Elon Musk’s consortium has submitted a $97.4 billion offer to acquire OpenAI, shedding light on the ongoing legal battle and strategic maneuvers surrounding the AI research organization.
Key Details of the Offer Letter:
Time-Bound Bid: The offer expires on May 10, 2025, with exceptions for certain scenarios.
All-Cash Transaction: The consortium, including investors like 8VC and Vy Capital, proposes a 100% cash buyout.
Due Diligence: Prior to the acquisition, the buyers seek access to OpenAI’s financial records and staff interviews.
Potential Legal Conflict: OpenAI contends that the offer contradicts Musk’s lawsuit alleging that the startup’s assets cannot be privatized.
Contingent Withdrawal: Musk’s team indicates that the bid may be withdrawn if OpenAI maintains its non-profit status.
Musk’s offer has raised questions about his intentions and the potential impact on OpenAI’s mission. The board of OpenAI has not officially rejected the offer, as they are legally obligated to consider such proposals.
The potential transaction has drawn criticism from some quarters, with accusations that it aims to undermine the non-profit’s valuation. OpenAI’s lawyer has stated that the board considers the offer “unserious” and that the non-profit is not for sale.
As the legal battle and negotiations continue, it remains to be seen how this situation will unfold and what the ultimate fate of OpenAI will be.
Original source: Read the full article on TechCrunch
