Billionaire Elon Musk has indicated his willingness to withdraw his $97.4 billion offer for OpenAI’s non-profit if certain conditions are met. As per court documents submitted to a California court, Musk’s bid is contingent on OpenAI’s board preserving its non-profit mission and ceasing its transition to a for-profit entity.
The filing contends that Musk’s offer is genuine and that OpenAI should receive fair market value for its assets. However, if OpenAI’s board commits to maintaining its charitable status and halts the for-profit conversion, Musk will retract his bid.
This development follows a proposal by Musk and his AI company, xAI, to acquire OpenAI’s non-profit on Monday. However, this proposal was promptly rejected by OpenAI’s board, citing concerns about valuation and the non-profit’s mission.
Musk, a co-founder of OpenAI, has previously filed a lawsuit against the organization and its CEO, Sam Altman, alleging anticompetitive practices and fraud. OpenAI has transitioned from a non-profit structure to a capped-profit entity in 2019, and is currently undergoing a restructuring to become a for-profit public benefit corporation.
Meanwhile, attorneys representing OpenAI have accused Musk’s actions of being an attempt to gain control of the company and contradict his own stance in court regarding the transfer of assets and the non-profit’s mission.
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