Elon Musk is considering pulling out of his massive $97.4 billion proposal to acquire the nonprofit organization behind OpenAI. This move hinges on whether the ChatGPT developer decides to abandon its plans to transition into a for-profit entity.
In a legal document submitted to a California court this past Wednesday, Musk’s legal team stated, “If the Board of OpenAI, Inc. is willing to commit to maintaining the nonprofit’s mission and revokes its decision to put a ‘for sale’ sign on its assets by halting its conversion, Musk will retract his bid.” The filing further suggests that if this doesn’t happen, “the nonprofit should be compensated according to what a neutral buyer would pay for its assets.”
Earlier this week, Musk and a group of investors put forth their offer, marking the latest chapter in this ongoing saga with the AI firm he co-founded about ten years ago.
The leadership of OpenAI is governed by a nonprofit board, with a commitment to its founding purpose: to safely advance AI capabilities that surpass human abilities for the benefit of the public. However, the company has expanded rapidly and revealed a plan last year to formally alter its corporate identity.
Musk, along with his AI venture xAI and several investment firms, aim to take over OpenAI with the intent of steering it back to its original aim as a nonprofit research facility.
Sam Altman, the CEO of OpenAI, swiftly brushed off the unsolicited offer on social media and reiterated at an AI summit in Paris that the company is not on the market.
The backstory here involves Musk and Altman jointly establishing OpenAI in 2015. They’ve had ongoing disputes regarding its leadership since Musk stepped down from the board in 2018, sparking a continuing disagreement over the company’s trajectory.
