Elon Musk Offers to Withdraw OpenAI Bid if Charity Mission Is Restored

In a court filing on Wednesday, Elon Musk’s lawyers revealed that the Musk would withdraw his $97.4 billion offer for OpenAI’s non-profit arm. 

Musk will pull OpenAI bid if the organization remains committed to its charitable mission and reverses its for-profit conversion.

Key points

• Elon Musk’s lawyers said, If the OpenAI board preserves the charity’s mission and agrees to remove the ‘for sale’ sign from its assets by halting its conversion, Musk will withdraw the bid,” the filing stated.
• It also emphasized that if OpenAI moves forward as a for-profit entity, the charity must be compensated based on fair market value for its assets.
• Musk’s offer was presented as an effort to advance OpenAI’s charitable mission, according to the filing.
  
  OpenAI’s CEO, Sam Altman, responded to the filing by informing Reuters that the non-profit organization controlling OpenAI is not for sale.
• However, OpenAI, led by Altman, rejected the bid, citing contradictions with Musk’s lawsuit and concerns about competition.

Background

Elon Musk and Sam Altman co-founded OpenAI 201 as a non-profit organization dedicated to the development of beneficial AI.

In 2018, OpenAI shifted to a “capped-profit” model, which led to Musk’s departure and disagreements with Altman.

In August 2024, Musk sued OpenAI, alleging that it had abandoned its no profit mission.

News Gist

Elon Musk’s lawyers stated Wednesday that he would withdraw his $97.4 billion bid for OpenAI’s non-profit arm if it remains committed to its charitable mission and halts its for-profit conversion.

OpenAI CEO Sam Altman rejected the bid, citing contradictions with Musk’s lawsuit and concerns about competition.