Elon Musk is willing to walk away from his $97.4 billion bid for OpenAI’s nonprofit if the company’s board agrees to keep its original mission intact and stop converting into a for-profit corporation.
In a court filing on Wednesday, Musk’s lawyer made it clear: if OpenAI’s board removes the “for sale” sign and commits to its nonprofit roots, Musk will withdraw the offer. The filing, submitted to the U.S. District Court for the Northern District of California, insists that Musk’s bid is “serious” and that OpenAI’s nonprofit should be fairly compensated if its assets are sold.
“If the charity’s assets are up for sale, Musk and his consortium have made a legitimate offer,” the filing states. “But if the board commits to preserving OpenAI’s mission and halts the transition, Musk will back off.”
This latest twist follows Musk’s bold move on Monday when he, his AI company xAI, and a group of investors made an unsolicited $97.4 billion offer to acquire OpenAI’s nonprofit arm. The proposal was swiftly rejected by OpenAI’s board and CEO Sam Altman. OpenAI’s legal counsel, Andy Nussbaum, dismissed the bid, arguing that it “doesn’t establish a value for the nonprofit” and reiterating that OpenAI is “not for sale.”
Musk, a co-founder of OpenAI, sued the company and Altman last year, accusing them of fraud and anticompetitive behaviour.
OpenAI originally launched as a nonprofit but shifted to a “capped-profit” model in 2019, where the nonprofit still held control over the for-profit entity. Now, OpenAI is restructuring again this time into a traditional for-profit public benefit corporation. Musk’s lawsuit aims to stop that transition.
Earlier on Wednesday, OpenAI’s legal team fired back, calling Musk’s bid an “improper attempt to undermine a competitor” and accusing him of contradicting his own court arguments about OpenAI’s nonprofit mission.
The battle over OpenAI’s future is far from over, and Musk’s latest move only raises the stakes. Elon Musk is ready to withdraw his $97.4 billion bid for OpenAI’s nonprofit but only if the company’s board commits to preserving its original mission and halts its transition into a for-profit corporation.
In a court filing on Wednesday, Musk’s lawyer stated that if OpenAI’s board removes the “for sale” sign and stays true to its nonprofit roots, Musk will walk away. The filing, submitted to the U.S. District Court for the Northern District of California, emphasizes that Musk’s offer is serious and that OpenAI’s nonprofit should receive fair compensation if it sells its assets.
Furthermore, the filing makes Musk’s position clear: “If OpenAI’s assets are up for sale, Musk and his consortium have made a legitimate offer. However, if the board commits to protecting OpenAI’s mission and halts the transition, Musk will withdraw the bid.”
This development follows Musk’s bold move on Monday when he, his AI company xAI, and a group of investors made an unsolicited $97.4 billion offer to acquire OpenAI’s nonprofit arm. However, OpenAI’s board and CEO Sam Altman quickly dismissed the proposal. In response, OpenAI’s legal counsel, Andy Nussbaum, rejected the bid, stating that it “doesn’t establish a value for the nonprofit” and reaffirming that OpenAI is “not for sale.”
Meanwhile, Musk continues his legal battle against OpenAI. Last year, he sued the company and Altman, accusing them of fraud and anticompetitive behaviour.
Originally founded as a nonprofit, OpenAI shifted to a “capped-profit” model in 2019, with the nonprofit still controlling the for-profit entity. Now, OpenAI is restructuring once again this time into a fully for-profit public benefit corporation. Through his lawsuit, Musk is actively working to block that transition.
Earlier on Wednesday, OpenAI’s legal team responded, calling Musk’s bid an “improper attempt to undermine a competitor” and accusing him of contradicting his own court arguments about OpenAI’s nonprofit mission.
As this legal battle intensifies, Musk’s latest move raises the stakes even higher. The question now is whether OpenAI’s board will stand firm or reconsider its position.
