Elon Musk has offered a $97.4 billion bid for OpenAI, but will drop the offer if the company converts to a for-profit firm. In a court filing, Musk’s lawyers stated that they would withdraw the bid if the OpenAI board preserves the charity’s mission and removes the “for sale” sign from its assets.
Musk had previously rebuffed an offer by OpenAI CEO Sam Altman, who countered with a much smaller bid amount of $9.74 billion. The exchange was marked by a heated exchange on social media, with Musk calling Altman a “swindler”.
OpenAI’s original mission is to build open-source technology that wouldn’t be subject to commercial priorities. However, the company recently received a $6.6 billion funding round based on the condition of converting to a for-profit firm.
If OpenAI converts, it would mark a significant departure from its original mission and could impact its relationship with Microsoft, which backs the company. The board’s response to Musk’s offer will determine whether he withdraws his bid or continues to pursue the acquisition.
Source: https://www.investopedia.com/musk-to-withdraw-openai-offer-if-chatgpt-maker-stays-nonprofit-11679225