Elon Musk has done something concerning his battle with OpenAI. He’s offering to withdraw his massive $97.4 billion bid. But there’s a catch. The company’s board must commit to its original mission and stop turning OpenAI into a for-profit entity.
Also read: Elon Musk Makes Bold $97.4B Offer to Buy OpenAI
Musk’s attorneys filed a legal document on Wednesday that went to the U.S. District Court for the Northern District of California. They emphasized that Musk’s offer is “serious” and ensures the nonprofit gets fair compensation for its assets.
“If the charity’s assets are sold, a Musk-led group has made a serious offer. The funds would support the nonprofit’s mission,” the filing states. “But if OpenAI’s board preserves its mission and stops the sale, Musk will withdraw his bid.”
This latest move adds to an already heated legal battle. Musk co-founded OpenAI but later distanced himself from it. Now, he wants to stop its transformation into a for-profit business.
OpenAI Pushes Back
OpenAI’s leadership quickly rejected Musk’s bid. CEO Sam Altman and the board dismissed the proposal. They argued that the offer does not fairly value the nonprofit. Andy Nussbaum, OpenAI’s board counsel, responded firmly. He said Musk’s bid “doesn’t set a value for (OpenAI’s) nonprofit.” He also made it clear that OpenAI “is not for sale.”
Musk, however, is not stepping down. He has been in a legal fight with OpenAI, accusing the company of fraud and unfair competition. Through his lawsuit, he hopes to block OpenAI’s restructuring plans.
The Root of the Conflict
OpenAI started as a nonprofit in 2015. Its goal was to develop AI for the benefit of humanity. In 2019, it shifted to a “capped-profit” model. This helped attract investors while keeping some nonprofit control.
Now, OpenAI is restructuring again. It’s transitioning into a traditional for-profit company. Specifically, it’s becoming a public benefit corporation (PBC). Musk argues this shift betrays OpenAI’s mission. He believes the company’s assets should not be privatized for financial gain.
Musk’s Legal Strategy: Mission-Driven or Competitive Tactic?
Musk claims his legal fight is about protecting OpenAI’s mission. But OpenAI’s legal team sees it differently. They argue that he is trying to take control of a competitor. In a separate filing on Wednesday, OpenAI’s lawyers called Musk’s move contradictory. They pointed out that he opposes restructuring, yet he’s attempting to buy OpenAI’s nonprofit assets himself.
