Elon Musk might not go ahead with his $97.4 billion bid for OpenAI’s nonprofit arm if the ChatGPT maker ceases its transition into a for-profit entity, according to a court filing submitted to the US District Court for the Northern District of California on Wednesday.
The filing stated that if OpenAI’s board agrees to uphold the nonprofit’s original mission and halts its shift toward commercialization, Musk will withdraw his offer.
Otherwise, the AI firm must be sold at a fair market price, CNBC reported citing the court filing.
Musk, alongside his AI company xAI and a group of investors, launched the bid earlier this week, alleging that OpenAI and CEO Sam Altman had strayed from their founding principles by prioritizing profits over ethical AI development.
Altman, however, dismissed the move as an attempt by Musk to hinder a rival’s progress.
Musk has been vocal about his discontent with OpenAI’
Founded in 2015 as a nonprofit, OpenAI transitioned to a “capped profit” model in 2019.
Musk, who helped establish the organization and contributed nearly $50 million in funding, has been vocal about his discontent with its shift toward commercialization.
Speaking via video at the World Governments Summit in Dubai, Musk reiterated his concerns, saying OpenAI’s move toward a fully for-profit model was a drastic departure from its original vision.
He likened the situation to creating a nonprofit to protect the Amazon rainforest, only for it to later become a logging company.
Musk further criticized OpenAI’s trajectory, suggesting it should rebrand as “Maximum Profit AI” or “Closed for Voracious Profit.”
Altman has remained unfazed by Musk’s bid
When asked on Tuesday how seriously he took the offer, he simply responded, “Not particularly.”
Speaking to Reuters on the sidelines of an AI summit in Paris, Altman responded bluntly when asked about Musk’s reported $97.4 billion bid.
“I have nothing to say. I mean, it’s ridiculous,” he said. He further claimed that Musk’s move was just another attempt to disrupt OpenAI, adding,
“The company is not for sale. It’s another one of his tactics to try to mess with us.”
Altman has also conveyed to OpenAI staff that the company’s board of directors intends to unequivocally reject Musk’s “supposed bid,” according to a report by The Information on Monday.
OpenAI supporters argue that the transition to a fully for-profit public benefit corporation—expected to take about two years—will enable the company to scale more effectively and attract further investment.
Altman has previously claimed that Musk ceased funding OpenAI, which contributed to its decision to modify its structure.
As the legal and corporate battle continues, Musk’s next move remains uncertain, but his criticism highlights the ongoing debate over AI development and its financial motivations.
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