Elon Musk has threatened to withdraw his $97 billion bid for OpenAI’s nonprofit arm if the organization stops its efforts to transition into a for-profit entity, arguing that it should maintain its original mission of prioritizing the public good. OpenAI’s CEO, Sam Altman, has stated that the organization is not for sale and plans to reject Musk’s bid, which they view as a potential conflict of interest given Musk’s own AI startup.
Elon Musk is intensifying his legal battle against OpenAI and its CEO, Sam Altman, by stating that he would withdraw his $97 billion bid for the nonprofit arm of the organization if OpenAI ceases its efforts to transition into a fully for-profit entity. Musk’s legal team has indicated that if OpenAI’s board commits to preserving the charity’s mission and removes the “for sale” sign from its assets, he will retract his offer. Otherwise, they argue that the nonprofit should be compensated fairly for relinquishing control over its assets.
Musk’s concerns center around the original mission of OpenAI, which was established as a nonprofit aimed at prioritizing the public good. He has previously sued OpenAI, claiming that the company has strayed from its foundational promise. The current valuation of OpenAI has skyrocketed to $157 billion, and Musk, as a co-founder, is advocating for the nonprofit to be compensated for what he describes as the most transformative technology of our time.
In a recent court filing, Musk’s lawyers emphasized that their offer is serious and aimed at preventing OpenAI’s conversion to a for-profit model. They argue that the nonprofit should not be allowed to transfer its assets for private gain, which they believe would contradict its charitable mission. Musk’s bid is framed as a way to ensure that the technology remains under a charitable trust rather than being exploited for profit.
OpenAI has responded to Musk’s bid, questioning his motives and suggesting that his actions may be aimed at undermining a competitor, given that he has launched his own AI startup, XAI. The organization’s legal team argues that Musk’s bid contradicts his claims about wanting to protect the nonprofit’s mission, as it seeks to transfer OpenAI’s assets to himself and his investors for economic gain.
Sam Altman, OpenAI’s CEO, has communicated to staff that the organization is not for sale and that the board intends to reject Musk’s bid in alignment with its commitment to its mission. This ongoing dispute poses challenges for OpenAI as it navigates its plans to transition to a for-profit model, which is crucial for its growth and fundraising efforts.