HomeElon Musk Withdraws OpenAI Bid if Board Agrees to Terms
In a court document submitted on Wednesday, Elon Musk's legal team announced that the billionaire is ready to pull back his $97.4 billion offer to acquire OpenAI's nonprofit, but only if the ChatGPT creator's board agrees to stick to the charity's original mission and stop the shift to a for-profit model.
The filing, which was sent to the U.S. District Court for the Northern District of California, emphasizes that Musk's proposal to purchase OpenAI's nonprofit is genuine and insists that the nonprofit should receive fair market value for its assets.
The document states, "Should ... the charity’s assets proceed to sale, a Musk-led consortium has submitted a serious offer ... that would go to the charity in furtherance of its mission." It continues, "However, if OpenAI, Inc.’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid."
This filing marks the latest twist in a drama that kicked off on Monday when Musk, his AI venture xAI, and a group of investors made a $97.4 billion bid to buy the nonprofit that essentially oversees OpenAI. OpenAI's CEO Sam Altman and the board were quick to reject this unsolicited offer. In response, Andy Nussbaum, the lawyer for OpenAI's board, stated that Musk's bid "doesn't set a value for [OpenAI's] nonprofit" and that the nonprofit is "not for sale."
Musk, who helped start OpenAI, filed a lawsuit against the company and Altman last year, accusing them of anticompetitive practices and fraud, among other charges.
Originally established as a nonprofit, OpenAI switched to a "capped-profit" model in 2019. The nonprofit remains the only controlling shareholder of the capped-profit OpenAI corporation, which is bound by the nonprofit's charter. Currently, OpenAI is moving towards becoming a traditional for-profit company, specifically a public benefit corporation. Through his lawsuit, Musk aims to block this transition.
Earlier on Wednesday, OpenAI's lawyers described Musk's attempt to take over the company as "an improper bid to undermine a competitor," and pointed out the inconsistency with his legal stance that transferring the startup’s assets through restructuring would violate its mission as a charitable trust.
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Comments (51)
0/500
![WillPerez]()
So Musk is basically saying 'I'll stop trying to buy you if you promise to stay poor'? Classic billionaire power move. 😂
![ArthurYoung]()
Interesting twist! If the board actually accepts these terms, it'd signal a major clash between AI commercialization and original non-profit ethos. Wonder if other big players are watching this closely as a precedent for governing AGI ventures. 🤔
![TimothyTaylor]()
Илон Маск снова всех удивил! 😅 Отказ от сделки с OpenAI, если они не вернутся к первоначальной миссии — это либо гениальный ход, либо отчаяние. Интересно, сколько таких гигантов, как OpenAI, смогут сохранить свои идеалы под давлением коммерциализации? Может, пора создавать альтернативные некоммерческие исследовательские платформы?
![BruceRoberts]()
Musk toujours aussi imprévisible ! 😅 Un moment il veut tout acheter, puis il pose des conditions... Ça devient fatigant ces revirements permanents. L'IA open-source mérite mieux que ces guerres d'égo.
![JamesCarter]()
Wow, Musk pulling back his $97.4B offer for OpenAI is wild! I get why he’s pushing for the nonprofit mission—ChatGPT’s roots are all about open research, not profit-chasing. But is this just him flexing or a real stand for ethics? 🤔 Curious to see how OpenAI’s board reacts.
![BrianWalker]()
Wow, Musk’s move to pull the OpenAI bid feels like a chess play! 🧩 If the board sticks to the nonprofit mission, it could keep AI development grounded, but I wonder if this is just Elon stirring the pot to push his own vision. What’s next for OpenAI’s direction? 🤔
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So Musk is basically saying 'I'll stop trying to buy you if you promise to stay poor'? Classic billionaire power move. 😂
Interesting twist! If the board actually accepts these terms, it'd signal a major clash between AI commercialization and original non-profit ethos. Wonder if other big players are watching this closely as a precedent for governing AGI ventures. 🤔
Илон Маск снова всех удивил! 😅 Отказ от сделки с OpenAI, если они не вернутся к первоначальной миссии — это либо гениальный ход, либо отчаяние. Интересно, сколько таких гигантов, как OpenAI, смогут сохранить свои идеалы под давлением коммерциализации? Может, пора создавать альтернативные некоммерческие исследовательские платформы?
Musk toujours aussi imprévisible ! 😅 Un moment il veut tout acheter, puis il pose des conditions... Ça devient fatigant ces revirements permanents. L'IA open-source mérite mieux que ces guerres d'égo.
Wow, Musk pulling back his $97.4B offer for OpenAI is wild! I get why he’s pushing for the nonprofit mission—ChatGPT’s roots are all about open research, not profit-chasing. But is this just him flexing or a real stand for ethics? 🤔 Curious to see how OpenAI’s board reacts.
Wow, Musk’s move to pull the OpenAI bid feels like a chess play! 🧩 If the board sticks to the nonprofit mission, it could keep AI development grounded, but I wonder if this is just Elon stirring the pot to push his own vision. What’s next for OpenAI’s direction? 🤔
