Musk’s Conditional Offer to Withdraw OpenAI Bid
Elon Musk has stated that he will withdraw his $97.4 billion bid for OpenAI’s nonprofit division if the organization’s board agrees to preserve its charitable mission and halt its transition into a for-profit entity. This condition was outlined in a court filing submitted on Wednesday to the U.S. District Court for the Northern District of California. According to Musk’s legal team, his offer to acquire OpenAI’s nonprofit arm is a serious proposition, ensuring that its assets remain aligned with its founding purpose. The filing emphasized that if OpenAI’s assets are put up for sale, a Musk-led consortium has put forth a competitive bid that would support the nonprofit’s mission. However, should the board decide to abandon its shift to a for-profit model, Musk will retract his offer.
OpenAI Board’s Rejection and Ongoing Dispute
The latest development follows an earlier Withdraw OpenAI Bid on Monday, in which Elon Musk, his AI firm xAI, and a group of investors proposed acquiring OpenAI’s nonprofit sector. However, OpenAI CEO Sam Altman and the board swiftly dismissed the unsolicited proposal. Andy Nussbaum, legal counsel representing OpenAI’s board, stated that Musk’s bid did not establish a value for OpenAI’s nonprofit, reinforcing that the organization is not for sale. The dispute is further intensified by Musk’s ongoing legal battle against OpenAI and its leadership, accusing them of engaging in anticompetitive practices and fraudulent behavior.
OpenAI’s Structural Shift and Legal Tensions
Initially founded as a nonprofit, OpenAI shifted to a “capped-profit” model in 2019, with the nonprofit entity retaining control over the organization’s commercial operations. Currently, Withdraw OpenAI Bid is undergoing another transformation into a public benefit corporation, a move that Musk is attempting to block through legal means. In response to Musk’s legal actions, OpenAI’s attorneys described his attempt to take control of the company as an effort to weaken a competitor, arguing that his position contradicts his claims that OpenAI’s restructuring would violate its mission as a charitable trust. As tensions escalate, the legal battle over OpenAI’s governance and direction is set to continue, shaping the future of one of the most influential AI organizations.
