Elon Musk will withdraw a $97.4 billion offer to buy OpenAI if the ChatGPT maker stops its conversion into a for-profit entity. Musk called for action in a filing to a US district court on 12 February.
“If OpenAI’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,” the court documents revealed. “Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets.”
Musk, his AI company xAI, and investment companies Baron Capital Group and Emmanuel Capital, launched a bid to buy OpenAI’s non-profit division on 10 February. The consortium accused OpenAI CEO Sam Altman of abandoning the company’s original mission of developing AI for good in favor of profit.
Altman rejected the offer and stated he would buy X for $9.7 billion. The OpenAI CEO told CNBC that Musk’s offer is a ploy to slow down a competitor. OpenAI was founded as a non-profit in 2015 and then moved to a capped-profit model in 20219. In September 2024, OpenAI initiated a restructure, making its for-profit unit independent from its non-profit parent to boost its ability to raise funds.
Musk is a co-founder of OpenAI but left the organization in 2018 following clashes with Altman and has since criticized the company’s revised business model. Musk repeated his concern over the change in OpenAI’s business model. He said he provided $50 million to OpenAI with the understanding it was meant to be open source and a non-profit entity.
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