Elon Musk has stated that he will withdraw his $97.4 billion offer to buy OpenAI if the company moves forward with its plan to transition into a for-profit entity.
Musk’s legal team conveyed in a filing to a California court on Wednesday that if OpenAI’s board chooses to maintain its original non-profit mission, they will retract the offer. They emphasized that OpenAI must halt its conversion to a for-profit structure, removing the “for sale” sign from its assets. If this is not the case, Musk’s group would be prepared to pay only what an arms-length buyer would for OpenAI’s assets.
Earlier this week, Musk and a group of investors presented their bid to acquire the controlling stake in OpenAI’s for-profit subsidiary, following a long-standing dispute. OpenAI, initially founded as a non-profit with the mission of safely advancing AI for the public good, had revealed plans last year to modify its corporate structure and become a for-profit entity.
Sam Altman, the CEO of OpenAI, quickly rejected the unsolicited bid, stating on social media that the company is not for sale. OpenAI’s board chair, Bret Taylor, reinforced this message during an event on Wednesday.
Musk and Altman, who helped establish OpenAI in 2015, have had a contentious relationship, with Musk stepping down from the board in 2018 after disagreements over leadership. Their feud has continued, with Musk pursuing legal action, withdrawing his suit, and then reinitiating it in 2024.
During a video call at the World Government Summit in Dubai on Thursday, Musk compared Altman’s leadership to that of a non-profit organization dedicated to saving the Amazon rainforest turning into a lumber company that cuts down trees. Altman, however, has argued that Musk’s legal battles stem from his role as the founder of a competing AI startup.
Musk has filed a lawsuit asking a California federal judge to block OpenAI’s shift to a for-profit model, citing breaches of contract and potential antitrust violations. While the judge has expressed doubts about some of Musk’s claims, no ruling has yet been made.
