Elon Musk has withdrawn his $97.4 billion bid to buy OpenAI’s nonprofit if the company agrees to preserve its charitable mission and halt its conversion to a for-profit entity.
In a court filing, lawyers for Musk stated that he will withdraw his offer if OpenAI’s board of directors prioritizes the charity’s mission over making a profit. The filing claims that Musk’s bid is “serious” and that the nonprofit must be compensated fairly by an arms-length buyer.
Musk had previously offered to buy OpenAI’s nonprofit, but the company’s CEO and board dismissed his proposal, saying it didn’t set a value for the nonprofit and that it’s not for sale. Musk also brought a lawsuit against OpenAI last year, alleging anticompetitive behavior and fraud.
OpenAI was founded as a nonprofit in 2019 and is now restructuring to become a traditional public benefit corporation. However, Musk is seeking to prevent this conversion, citing a contradiction between his previous statements and the proposed restructuring. Lawyers for OpenAI have described Musk’s move as an attempt to undermine a competitor and breach the mission of the charitable trust.
Source: https://techcrunch.com/2025/02/12/elon-musk-will-withdraw-bid-for-openais-nonprofit-if-its-board-agrees-to-terms