Musk to Withdraw $97.4 Billion OpenAI Bid if Company Stays Nonprofit
Elon Musk has stated that he will withdraw his $97.4 billion bid to acquire OpenAI’s nonprofit parent if the ChatGPT maker abandons its plan to transition into a for-profit entity.
“If OpenAI, Inc.’s Board is willing to uphold the organization’s charitable mission and formally end its conversion process, Musk will retract the offer,” his legal team said in a Wednesday filing with a California court.
“Otherwise, the nonprofit must be compensated based on what an independent buyer would pay for its assets.”
Musk and a group of investors submitted their bid earlier this week, marking the latest development in an ongoing dispute with the AI company he co-founded nearly a decade ago.
OpenAI is currently governed by a nonprofit board dedicated to its original mission of developing advanced AI for public benefit. However, as the company has expanded rapidly, it announced plans last year to restructure as a for-profit entity.
Musk, along with his AI startup xAI and a coalition of investment firms, aims to acquire OpenAI and restore it to its original nonprofit research focus.
OpenAI CEO Sam Altman swiftly rejected the unsolicited bid, reaffirming on social media and at an AI summit in Paris that the company is not for sale.
Musk and Altman, both co-founders of OpenAI in 2015, have clashed for years over the company’s direction, particularly since Musk stepped down from its board in 2018.
