Elon Musk to Withdraw OpenAI Bid if Board Stays Non-Profit, Lawyers Say
Elon Musk and his team have made it clear—they will withdraw their $97.4 billion bid for OpenAI’s non-profit arm if the company does not remain a non-profit. Musk, who co-founded OpenAI in 2015 but later left, has been fighting against the company’s shift toward a for-profit model. Know here why Musk is withdrawing the OpenAI bid now.
Why Is Elon Musk Making This Offer?
Musk wants OpenAI to stick to its original mission as a non-profit focused on AI research for the benefit of humanity. His legal team has stated that if OpenAI agrees to stop its transformation into a for-profit company, he will withdraw his bid. However, if OpenAI moves forward with its profit-driven approach, he believes the non-profit should be fairly compensated for its assets.
Musk’s bid is not just about acquiring OpenAI—it’s about ensuring that AI development remains open, transparent, and mission-driven. He argues that transitioning to a for-profit model goes against the company’s founding principles. This bid is crucial for the future of AI development and warrants the audience’s attention.
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Sam Altman Calls Musk’s Bid “Ridiculous”
Sam Altman, the CEO of OpenAI, has dismissed Musk’s offer, calling it “ridiculous.” He emphasized that OpenAI’s non-profit board is not for sale. Further, he added that the transformation into a for-profit model is necessary to secure more funding and remain competitive in the AI industry.
Altman’s decision to shift OpenAI into a for-profit business stems from the need to attract big investors like Microsoft, which has already provided significant funding to the company. However, Musk’s legal team insists that this change could harm OpenAI’s original mission and is pushing for legal action to prevent it.
Will OpenAI Accept Musk’s Conditions?
Currently, OpenAI’s board has not formally received Musk’s offer, according to sources close to the matter. This uncertainty around OpenAI’s response to Musk’s offer adds an intriguing element to the situation.
While the company continues its efforts to transition into a for-profit model, Musk’s intervention could complicate the process. Analysts suggest that his bid could set a high minimum value for OpenAI’s non-profit entity. Thus making it harder for the company to move forward with its restructuring plans.
What’s Next for OpenAI and the AI Industry?
No matter what happens, one thing is certain—OpenAI is facing a big decision. If Musk stops the company from becoming for-profit, OpenAI will need to find new ways to get funding. However, if Altman’s plan goes ahead, OpenAI will fully shift into a business focused on making profits and growing in the AI industry.
Meanwhile, Musk is also working on his own AI startup, xAI, which he launched in 2023. As competition heats up in the AI space, the battle over OpenAI’s future is far from over. It remains to be seen whether Musk’s bid will significantly impact the company’s future direction
Source: Musk will pull OpenAI bid if ChatGPT maker remains non-profit, lawyers say
