Elon Musk has indicated that he will retract his substantial $97.4 billion proposal to acquire the nonprofit organization that operates OpenAI if it abandons its initiative to transition into a for-profit entity.
In a legal statement provided to a court in California, Musk’s legal team conveyed, “If the Board of OpenAI, Inc. is willing to uphold the charitable mission and agrees to remove the ‘for sale’ sign from its assets by stopping the conversion, Musk will cancel the bid.”
They further stated, “If not, the charity should receive a fair market value from an independent buyer for its assets.”
Earlier this week, Musk, along with a consortium of investors, submitted their proposal, adding another layer to an ongoing dispute with the AI organization that Musk co-founded nearly ten years ago.
Currently, OpenAI is overseen by a nonprofit board that is committed to its foundational mission of developing advanced AI technologies safely for the benefit of the public. However, after rapidly growing, it announced intentions last year to officially modify its corporate framework.
Musk, through his AI firm xAI, along with a group of investment firms, seeks to obtain the nonprofit’s controlling interest in OpenAI’s for-profit division.
OpenAI CEO Sam Altman swiftly dismissed the unsolicited acquisition attempt on social media, asserting that the organization is not for sale.
Bret Taylor, chair of OpenAI’s board, reiterated these sentiments during a recent event.
Musk and Altman played significant roles in the founding of OpenAI in 2015 but have been at odds over leadership issues, with Musk stepping down from the board in 2018. Since then, their relationship has deteriorated into an ongoing rivalry.
During a video conference at the World Governments Summit in Dubai, Musk criticized Altman’s leadership, likening it to a charity that’s intended to protect the Amazon rainforest morphing into a lumber company that destroys it.
Altman has countered these criticisms, suggesting that Musk’s legal disputes with OpenAI are fueled by competitive motives.
Musk is currently pursuing legal action in federal court in California to prevent OpenAI from transitioning to a for-profit model, making various claims, including breach of contract and antitrust violations.
While the judge has shown doubts regarding some of Musk’s claims, a final decision has yet to be made.