Elon Musk has announced that he will withdraw his nearly $100 billion bid to acquire OpenAI if the company continues operating under its nonprofit structure. Musk, who co-founded OpenAI but later distanced himself from the organization, stated in a court filing Wednesday that he will drop the matter if OpenAI adheres to what he believes was its founding mission.
“If OpenAI, Inc.’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid,” he said.
The ongoing battle for control of OpenAI has turned personal, pitting Musk against OpenAI CEO Sam Altman. Musk announced Monday that he was leading a group of investors in an attempt to purchase OpenAI for $97.4 billion. However, OpenAI has pushed back, arguing in legal filings that Musk’s actions contradict his own prior demands that OpenAI remain a nonprofit.
“In this Court, Musk argues that OpenAI, Inc.’s assets cannot be ‘transferred away’ for ‘private gain,’” OpenAI said in a filing. “But out of court, those constraints evidently do not apply, so long as Musk and his allies are the buyers.”
Altman, who has been at the center of OpenAI’s rapid rise to a $100 billion valuation, publicly criticized Musk’s bid and suggested that the Tesla CEO was attempting to slow OpenAI’s progress.
Musk, in a speech at the World Government Summit in Dubai on Thursday, reiterated his concerns, likening OpenAI’s transformation to a nonprofit meant to protect the Amazon rainforest turning into a logging company.
OpenAI has yet to officially reject Musk’s bid but maintains that its nonprofit entity is not for sale. OpenAI’s legal team asserts that, unlike traditional for-profit firms, it has no obligation to consider Musk’s offer.
“The independent Board’s sole fiduciary duty is to the mission of ensuring AGI benefits all of humanity,” said Andrew Nussbaum, legal counsel to OpenAI’s board.
The dispute underscores broader tensions in the AI industry, as major players compete for control of the rapidly evolving technology and its financial potential.
