Elon Musk says he will cancel his $97.4 billion bid to buy ChatGPT if its developer stays nonprofit. The tech billionaire, who co-founded OpenAI before he broke ties with the organization, is adamant that the initial mission of OpenAI should not be lost.
Musk, heading an investor group, recently made a jaw-dropping bid to buy OpenAI. He explained in a Wednesday court filing that he would abandon the issue if OpenAI ceases its structural shift toward being a purely for-profit organization.
If OpenAI's Board is willing to maintain the charity's purpose and mandate to remove the "for sale" sign from its assets by ending its conversion, the business tycoon will call off the offer, according to the filing.
Sam Altman Won't Back Down Easily
OpenAI CEO Sam Altman has fiercely opposed Musk's bid, calling it hypocritical. OpenAI's legal team also pointed out inconsistencies in Musk's stance. While Musk argues in court that OpenAI must remain nonprofit, his bid aims to transfer all assets to himself and his private investors, CNN writes in its report.
In its legal response, the Altman-owned OpenAI said that Musk's argument indicates that the company's assets cannot be "transferred away" for private gain in the court.
The statement added that such constraints "evidently" do not apply as long as Elon and his allies are the ones who will buy.
Musk's legal representatives have yet to respond to these allegations. However, OpenAI's legal counsel, Andrew Nussbaum, emphasized that the nonprofit board has no obligation to consider Musk's bid, as its primary duty is to ensure AI benefits humanity.
Musk's Criticism of OpenAI's For-Profit Shift
Musk has long criticized OpenAI's shift toward commercialization. The organization initially operated as a nonprofit but later introduced OpenAI LP, a for-profit entity, to secure funding and scale its operations. The company has since soared to a valuation of approximately $100 billion, largely credited to Altman's leadership.
Musk argues that OpenAI's transformation contradicts its founding principles. He likened the situation to funding a nonprofit dedicated to saving the Amazon rainforest, only to see it turn into a lumber company.
During the World Government Summit in Dubai, Musk said that OpenAI managed to go far while having at least a dual nonprofit/for-profit role. He added that the complete erasing of the nonprofit appears to be "crossing the line."
Personal Rivalry Feeds the Battle
Aside from legal and structural conflicts, the dispute has also assumed a personal character. Musk and Altman have publicly disagreed for years, with Altman recently asserting that Musk's behavior is motivated by insecurity.
A report by Business Insider tells us that Altman thought that Musk wasn't a happy person.
"I think he's probably just trying to slow us down," Altman guessed.
