Musk Conditions OpenAI Bid Withdrawal on Nonprofit Status

Elon Musk has proposed to withdraw his $97.4 billion bid to acquire OpenAI if the company agrees to remain a nonprofit and halts its transition to a for-profit entity.

Musk’s legal representatives stated that he would retract his takeover offer if OpenAI’s board commits to preserving its original charitable mission. If the organisation refuses, they argue that OpenAI’s nonprofit division should be compensated at fair market value for its assets.

This development comes amid an ongoing legal battle between Musk and OpenAI’s leadership. The Tesla and SpaceX CEO, who co-founded OpenAI in 2015 but left in 2018, has been openly critical of the company’s shift toward a for-profit model.

Also Read: Elon Musk’s Consortium Bids $97.4 Billion for Control of OpenAI

Earlier this year, Musk filed a lawsuit against OpenAI and its CEO, Sam Altman, claiming the company had abandoned its founding principles of developing AI for the benefit of humanity rather than corporate interests.

In response, OpenAI has rejected Musk’s bid, with Altman affirming that the company is not for sale. OpenAI also accused Musk of acting out of self-interest, given his leadership of rival AI startup xAI.

The outcome of this dispute could significantly impact OpenAI’s future structure and mission, as well as its position within the rapidly evolving AI industry.