In a recent filing submitted to the U.S. District Court for the Northern District of California, billionaire Elon Musk's lawyer stated that if OpenAI's board can "maintain the mission of the nonprofit organization" and cease its transformation into a for-profit company, Musk will withdraw his proposal to acquire OpenAI's nonprofit organization for $97.4 billion.
The document emphasizes that Musk's acquisition proposal is "serious" and points out that the OpenAI nonprofit must receive compensation comparable to what a regular buyer would pay for its assets. It further mentions that Musk and his team have submitted a serious offer aimed at supporting OpenAI's mission. However, if the OpenAI board is prepared to retain the nonprofit's mission and remove the "for sale" sign from its assets, Musk will abandon his bid.
This Monday, Musk, along with his AI company xAI and other investors, jointly proposed to acquire OpenAI's nonprofit organization for $97.4 billion. In response, OpenAI's CEO Sam Altman and the board swiftly rejected the offer. OpenAI's board legal advisor Andy Nussbaum stated that Musk's bid "does not set a value for OpenAI's nonprofit organization," while emphasizing that the nonprofit "is not for sale."
It is worth noting that Musk was a co-founder of OpenAI, but he filed a lawsuit against the company and Altman last year, alleging anti-competitive behavior and fraud. OpenAI was originally established as a nonprofit before transforming into a "capped profit" structure in 2019. Currently, the nonprofit is the sole controlling shareholder of the "capped profit" OpenAI company and retains formal fiduciary responsibility for the nonprofit's charter.
Meanwhile, Musk is attempting to halt this transformation through litigation. Earlier on Wednesday, OpenAI's lawyers pointed out that Musk's actions are considered "improper conduct aimed at undermining competitors," which contradicts his court argument that transferring the assets of a startup through restructuring would violate its mission as a charitable trust.
Key Points:
🌟 Musk threatens to withdraw his acquisition proposal for OpenAI, contingent on the board not transforming into a for-profit entity.
💰 His $97.4 billion acquisition proposal was quickly rejected by the OpenAI board.
⚖️ Musk is attempting to block OpenAI's transformation through litigation, alleging anti-competitive behavior.
