On Monday, Elon Musk, CEO of xAI, proposed a $97.4 billion acquisition of OpenAI, the non-profit organization behind the popular AI platform ChatGPT. This unsolicited offer was swiftly rejected by OpenAI CEO Sam Altman, who publicly criticized Musk’s proposal.
OpenAI, which Musk co-founded, is currently undergoing a restructuring process to transition from a “capped-profit” structure to a traditional for-profit public benefit corporation. This move aims to secure additional capital, but Musk’s bid poses potential challenges to this plan.
Experts believe Musk’s offer may have “stalled” the non-profit conversion and increased its potential valuation. State attorneys general are now requesting more information regarding OpenAI’s transition plans, and external bids are being considered due to Musk’s proposal.
OpenAI’s board will likely reject Musk’s offer, but legal battles could ensue as Musk seeks to halt the non-profit conversion process. The bid also raises questions about possible conflicts of interest if OpenAI’s assets were acquired by insiders.
Legal experts emphasize the board’s responsibility to protect OpenAI’s interests and consider the potential impact on its mission of “ensuring that artificial general intelligence benefits all of humanity.”
Musk’s offer highlights the interest in acquiring OpenAI’s non-profit arm and may complicate the company’s restructuring plans and negotiations with existing investors.
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