Elon Musk Says He Will Drop OpenAI Bid if Company Preserves Nonprofit Mission
The New York Times
In a court filing, Mr. Musk said he and other investors would pull their $97.4 billion bid if OpenAI withdrew its plan to change its structure.
Elon Musk said in a court filing late Wednesday that he would withdraw his $97.4 billion bid to control OpenAI if the company dropped a longstanding effort to change its corporate structure.
Mr. Musk and a consortium of investors had offered on Monday to buy the assets of the nonprofit that controls OpenAI, escalating a yearslong feud between Mr. Musk and OpenAI’s chief executive, Sam Altman, over the future of artificial intelligence. Mr. Altman is in the middle of changing OpenAI’s corporate structure by shifting control of the company from the nonprofit to OpenAI’s investors, including Microsoft.
Two days later, OpenAI’s board of directors questioned the bid’s rationale and accused Mr. Musk of hypocrisy. Within hours, Mr. Musk’s legal team replied with the new court filing saying they would drop the bid if OpenAI’s board of directors agreed to preserve the mission of the nonprofit and “take the ‘for sale’ sign off its assets.”
The feud between Mr. Musk and Mr. Altman is deeply personal. Mr. Musk helped found OpenAI as a nonprofit in 2015, along with Mr. Altman and others. When Mr. Musk left the organization in 2018 after a battle for control, Mr. Altman attached OpenAI to a for-profit company so he could raise the large amounts of money needed to build A.I. technologies.
The nonprofit retained control of the company. Last year, Mr. Altman and his colleagues began working on a plan to shift control of the company from the nonprofit to OpenAI’s investors. Mr. Musk’s bid could complicate that plan.
To separate OpenAI from the nonprofit board, Mr. Altman and his colleagues must provide compensation. OpenAI might pay the nonprofit a fee, for instance, or give it a minority stake in the company.
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In a court filing, Mr. Musk said he and other investors would pull their $97.4 billion bid if OpenAI withdrew its plan to change its structure.
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