Elon Musk has announced that he will abandon his $97.4 billion bid to acquire the non-profit organization behind OpenAI if the company proceeds with plans to convert into a for-profit entity. This statement was made through a legal filing submitted to a California court on Wednesday.
- Musk’s lawyers stated that if OpenAI’s board agrees to preserve the organization’s charitable mission and halts its plan to convert, Musk will withdraw the offer.
- However, if the conversion continues, Musk insists that OpenAI must be compensated by an arms-length buyer for its assets.
- This offer came after Musk, along with investors from his AI startup xAI, proposed acquiring the non-profit’s controlling stake in the for-profit OpenAI subsidiary.
Earlier this week, OpenAI’s CEO, Sam Altman, swiftly rejected the unsolicited offer, stating on social media that the company is not for sale. OpenAI’s board chair, Bret Taylor, also reinforced this position during an event.
Background:
- Musk and Altman co-founded OpenAI in 2015, but their relationship has since soured. Musk resigned from the board in 2018 after a public dispute over leadership.
- The conflict has escalated with Musk suing OpenAI, dropping the case, and suing again in 2024, claiming legal issues ranging from breach of contract to antitrust violations.
Musk criticized Altman’s management during a video call at the World Government Summit in Dubai, comparing it to a non-profit organization turning into a commercial entity. Altman, in turn, has suggested that Musk’s legal actions stem from his competing AI startup.
Legal Developments:
- Musk has sought a ruling from a California federal judge to block OpenAI’s conversion into a for-profit model, but the judge has expressed skepticism over some of Musk’s claims.
- A final ruling has not yet been issued.
Musk’s legal battle with OpenAI reflects deep tensions between the company’s founders, with Musk pushing for a reversal of its corporate structure. As the dispute continues, the future of OpenAI’s direction remains uncertain, with Musk demanding that the charity’s mission be preserved while also seeking compensation for its assets if the plans proceed.