Elon Musk’s $97.4 billion bid to acquire OpenAI is contingent on the company maintaining its nonprofit mission, according to reports.
In a recent court filing, Musk stated that he would withdraw his offer if OpenAI’s board agrees to preserve the charity’s original purpose and halt its shift to a for-profit model. However, if OpenAI moves forward with its transformation, Musk insists the company must be sold at fair market value to a third-party buyer.
Musk’s offer and legal actions stem from his opposition to OpenAI’s evolution from a nonprofit to a “capped-profit” organization, a change made in 2019 after Musk ceased financial contributions.
OpenAI’s CEO, Sam Altman, has rejected Musk’s bid, accusing him of attempting to slow the company’s progress rather than seeking an acquisition.
Musk has voiced concerns that the shift to a profit-driven model betrays OpenAI’s founding mission, comparing it to a nonprofit designed to protect the Amazon rainforest turning into a logging company.
The dispute between Musk and Altman dates back years, with Musk filing legal complaints accusing OpenAI of misrepresenting itself as a philanthropic entity. OpenAI’s legal team has argued that as a nonprofit, it has no obligation to consider Musk’s bid, and emphasized that its mission is to ensure artificial general intelligence (AGI) benefits humanity.
Musk’s bid is backed by financial supporters, including Ron Baron of Baron Capital, but notable investors from his Twitter acquisition, such as Oracle’s Larry Ellison, are not involved. If Musk’s offer is successful, it could lead to a merger between OpenAI and Musk’s own AI startup, xAI.