Elon Musk says he’ll drop his $97 billion OpenAI bid on one condition- if the company remains a nonprofit. Elon Musk has threatened to withdraw his $97.4 billion offer to buy OpenAI if the company maintains its nonprofit status. OpenAI CEO Sam Altman called the bid “ridiculous” and stated the company is not for sale.
Musk, who co-founded OpenAI alongside Altman, left the organization due to disagreements about its direction. Legal disputes and public criticism have since marked the relationship between the two.
A consortium led by Musk submitted the offer on February 10. However, in a court filing on February 12, Musk’s legal team stated that the bid would be withdrawn if OpenAI halted its plan to convert into a for-profit entity.
Musk argued that OpenAI was established as an open-source nonprofit but has shifted towards a closed, profit-driven model. “They changed the name to closed for maximum profit,” Musk said during a virtual appearance at the World Government Summit in Dubai on February 13.
OpenAI dismissed the bid as an “improper attempt to undermine a competitor.” Altman reiterated that OpenAI is not for sale, calling the offer a tactic by Musk to interfere with the company.
Dispute Over Nonprofit Mission
Musk claimed he provided the initial $50 million in funding to OpenAI as a nonprofit venture. He compared the company’s shift from a for-profit model to a charity for rainforest preservation, becoming a lumber company.
OpenAI, founded in 2015 as a nonprofit, introduced a “capped profit” model in 2019, controlled by the nonprofit’s board. Musk has since sued OpenAI twice, alleging that the company is abandoning its nonprofit mission.
Altman defended the shift, stating that the nonprofit would continue to play a significant role. He emphasized that the mission of OpenAI remains focused on public benefit.
Musk-Altman Feud Continues
In a recent statement, Elon Musk said he’ll drop his $97 billion OpenAI bid on one condition related to its corporate structure. The rivalry between Musk and Altman dates back to Musk’s departure from OpenAI in 2019. After leaving, Musk founded his own AI startup, xAI. The feud intensified when Musk filed multiple lawsuits against OpenAI, criticizing its move towards commercialization.
Altman accused Musk of trying to disrupt OpenAI’s operations due to competition from xAI. He also claimed that OpenAI’s transition to a for-profit model was necessary after Musk ceased funding the nonprofit.
OpenAI’s Corporate Restructuring
OpenAI is currently controlled by a nonprofit board that oversees its for-profit subsidiary. The company revealed plans to change its corporate structure, shifting control away from the nonprofit arm.
If Musk’s offer is not withdrawn, OpenAI’s board will be required to evaluate its value as part of its legal obligations. This is due to the potential impact on the nonprofit’s controlling interest in the for-profit subsidiary.
Future of OpenAI Remains Uncertain
During an event, Elon Musk says he’ll drop his $97 billion OpenAI bid on one condition, accusing the company of abandoning its nonprofit roots. Elon Musk’s bid to acquire OpenAI has sparked intense debate over the future of artificial intelligence and nonprofit organizations’ role in tech development. Musk argues that OpenAI is straying from its original mission as an open-source nonprofit.
In contrast, OpenAI CEO Sam Altman defends the company’s shift towards a for-profit model as necessary for growth and innovation. The ongoing dispute raises questions about OpenAI’s mission and corporate structure. Musk’s criticisms highlight concerns about the organization’s shift from its original nonprofit vision, while Altman defends the move as necessary for growth and innovation.
