Elon Musk has launched a $97.4 billion bid to acquire OpenAI’s nonprofit arm, but CEO Sam Altman has rebuffed the offer. In a court filing, Musk revealed that he will withdraw his bid if OpenAI stops its conversion into a for-profit entity. The nonprofit was initially founded in 2015 and later changed to a “capped profit” model in 2019.
Musk claims that OpenAI abandoned its original mission to develop AI for good and is now pursuing profits instead. Altman has disputed this, saying Musk’s bid is an attempt to “slow down a competitor.” The nonprofit was initially funded by Musk himself, who donated $50 million.
The court filing states that if OpenAI halts its conversion, Musk will withdraw the bid. However, if it continues, the charity must be compensated for its assets at an arms-length buyer price. OpenAI has been exploring its conversion to a for-profit entity, which could take two years.
Source: https://www.cnbc.com/2025/02/13/musk-will-withdraw-openai-bid-if-chatgpt-maker-stays-nonprofit-lawyers.html