Musk says boards will withdraw bids for OpenAI if they stop turning into for-profit companies

In a recent filing with the U.S. District Court for Northern District of California, billionaire Elon Musk said that if OpenAI’s board of directors can “maintain the charity’s mission” and stop turning it into a for-profit company , Musk will withdraw his proposal to acquire OpenAI nonprofit organization $97.4 billion.

The document stressed that Musk's proposal for acquisition was "serious" and pointed out that OpenAI nonprofits must be compensated by regular transaction buyers for their assets. The document further mentioned that Musk and his team have submitted a serious offer to support OpenAI's mission. However, if the OpenAI board of directors is ready to retain the charity’s mission and withdraw the “for-sale” sign of assets, Musk will abandon the bid.

On Monday, Musk joined hands with his artificial intelligence company xAI and other investors to acquire OpenAI's nonprofit organization for $97.4 billion. OpenAI CEO Sam Altman and the board of directors quickly declined to respond. Andy Nasbaum, legal counsel for the OpenAI board, said Musk's bid "has not set value for OpenAI's non-profit organization", while stressing that the non-profit organization is "not selling".

It is worth noting that Musk was the co-founder of OpenAI, but he filed a lawsuit against the company and Altman last year, accusing OpenAI of illegal activities such as anti-competitive behavior and fraud. OpenAI was originally established as a nonprofit organization before it transformed into a "capped profit" structure in 2019. Today, nonprofit organizations are the sole controlling shareholder of the “for-profit” OpenAI company and retain their formal fiduciary responsibility for the nonprofit’s articles of association.

Meanwhile, Musk is trying to stop the shift through litigation. Earlier on Wednesday, OpenAI lawyers noted Musk's move was considered "misconduct to undermine competitors", contradicting the position he claimed in court, believing that transferring the startup's assets through a restructuring would violate its As a mission of a charitable trust.