Musk will withdraw $155b bid if OpenAI remains a nonprofit
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The news: Elon Musk has threatened to withdraw his USD97.4 billion ($155.4 billion) bid for OpenAI's non-profit arm if the board blocks its conversion to a for-profit company.
The context: A court filing submitted by the billionaire’s lawyers on Thursday reads: “If [the] OpenAI board is prepared to preserve the charity’s mission and stipulate to take the “for sale” sign off its assets by halting its conversion, Musk will withdraw the bid.”
The filing continues that if OpenAI does not drop its plans, then it must be compensated by what an “arms-length buyer” would pay for its assets.
The filing states that Musk’s offer was made in efforts to further the mission of the charity.
Earlier this week OpenAI CEO Sam Altman rejected the consortium bid led by Musk to buy out the non-profit entity, which controls the owner of ChatGPT.
Musk, a co-founder of OpenAI, and Altman have been at loggerheads for years over the direction that OpenAI has taken since its founding. Musk has alleged that OpenAI has abandoned its origins as a charity to benefit humanity, by working to transition into a for-profit company after receiving billions of dollars in outside funding.
The sources: Reuters, Capital Brief
