Did you know Elon Musk Plans to Withdraw $97 Billion Bid for OpenAI’s Non-Profit Arm If Company Stops Switch To Become For-Profit Entity

 

Tech billionaire Elon Musk plans to withdraw his $97.4B bid for OpenAI’s non-profit arm under one condition. And that has to do with the company stopping its switch to become a for-profit entity as per a recent court filing.

If the OpenAI’s Inc. Board preserves its charity mission which was the goal to begin with from day one, Musk will remove his bid, the filing went on to mention. This was shared on Wednesday with the American District Court for the Northern District of California.

If they choose not, then the charity would be compensated by what arms-length buyer would be willing to pay for assets, it further shared. We do know that on Monday, Elon Musk alongside his AI firm xAI and another bunch of investors mentioned that they were rolling out a bid to acquire the non-profit division. The figure on offer was $97.4B after they accused the company and its CEO of detracting from the actual mission of forming AI for people’s good. He said that their goal was to make a profit right now and that’s far from what the mission stated.

Sam Altman chose to slam Elon Musk in public by posting on X that they were not interested but thanked him and offered to purchase Twitter instead. He also called out Musk for the thought of such an idea that was solely designed to slow down competitors.

OpenAI was first founded as a nonprofit firm in the year 2015 and later it transformed to become a capped profit model. We saw Elon Musk help launch the AI firm at the start where he is believed to have donated $50M. But since he left in 2018, he’s been very happy with the company. The OpenAI move of transforming into a for-profit entity has made him upset.

He’s been speaking very vocally about the issue in public and even expressed concerns on different forums including the World Governments Summit in the UAE that was held recently. When asked if he felt a company serving the nonprofit status could really scale or not, his reply was yes because that’s what it was doing right now. He felt Altman was trying to delete the non-profit status forever which was alarming.

He then tried to steal the limelight by mentioning that he provided the initial funding of $50M for the sole purpose of it being a nonprofit and that means open source. He provided more examples of how and why the decision being taken by OpenAI was wrong.

Musk tried to make others smile by stating how the firm should transform its name from OpenAI to Maximum profit AI as that stood true to his rival’s intentions. Altman has said that the reason why it’s transforming is because Musk stopped funding it and also to give rise to a more attractive venture for investments.