Elon Musk Withdraws OpenAI Bid if Board Agrees to Terms
In a court document submitted on Wednesday, Elon Musk's legal team announced that the billionaire is ready to pull back his $97.4 billion offer to acquire OpenAI's nonprofit, but only if the ChatGPT creator's board agrees to stick to the charity's original mission and stop the shift to a for-profit model.
The filing, which was sent to the U.S. District Court for the Northern District of California, emphasizes that Musk's proposal to purchase OpenAI's nonprofit is genuine and insists that the nonprofit should receive fair market value for its assets.
The document states, "Should ... the charity’s assets proceed to sale, a Musk-led consortium has submitted a serious offer ... that would go to the charity in furtherance of its mission." It continues, "However, if OpenAI, Inc.’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid."
This filing marks the latest twist in a drama that kicked off on Monday when Musk, his AI venture xAI, and a group of investors made a $97.4 billion bid to buy the nonprofit that essentially oversees OpenAI. OpenAI's CEO Sam Altman and the board were quick to reject this unsolicited offer. In response, Andy Nussbaum, the lawyer for OpenAI's board, stated that Musk's bid "doesn't set a value for [OpenAI's] nonprofit" and that the nonprofit is "not for sale."
Musk, who helped start OpenAI, filed a lawsuit against the company and Altman last year, accusing them of anticompetitive practices and fraud, among other charges.
Originally established as a nonprofit, OpenAI switched to a "capped-profit" model in 2019. The nonprofit remains the only controlling shareholder of the capped-profit OpenAI corporation, which is bound by the nonprofit's charter. Currently, OpenAI is moving towards becoming a traditional for-profit company, specifically a public benefit corporation. Through his lawsuit, Musk aims to block this transition.
Earlier on Wednesday, OpenAI's lawyers described Musk's attempt to take over the company as "an improper bid to undermine a competitor," and pointed out the inconsistency with his legal stance that transferring the startup’s assets through restructuring would violate its mission as a charitable trust.
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Comments (47)
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![JamesCarter]()
JamesCarter
August 13, 2025 at 11:00:59 AM EDT
Wow, Musk pulling back his $97.4B offer for OpenAI is wild! I get why he’s pushing for the nonprofit mission—ChatGPT’s roots are all about open research, not profit-chasing. But is this just him flexing or a real stand for ethics? 🤔 Curious to see how OpenAI’s board reacts.
0
![BrianWalker]()
BrianWalker
July 27, 2025 at 9:19:30 PM EDT
Wow, Musk’s move to pull the OpenAI bid feels like a chess play! 🧩 If the board sticks to the nonprofit mission, it could keep AI development grounded, but I wonder if this is just Elon stirring the pot to push his own vision. What’s next for OpenAI’s direction? 🤔
0
![CharlesJohnson]()
CharlesJohnson
April 20, 2025 at 1:49:03 PM EDT
¡El movimiento de Elon con OpenAI es bastante salvaje! Si la junta se mantiene en la misión original, él retirará su oferta masiva. Es genial que quiera mantenerlo sin fines de lucro, pero no estoy seguro de que eso sea realista en la carrera de IA actual. 🤔 ¿Qué piensas? Elon, sigue empujando los límites, pero tal vez encuentra un punto medio.
0
![DennisAllen]()
DennisAllen
April 19, 2025 at 9:21:02 PM EDT
Ход Элона с OpenAI довольно дикий! Отозвать предложение на $97.4 млрд только для того, чтобы сохранить его некоммерческим? Это преданность делу, я полагаю. Но давай, Элон, нам нужны эти достижения в области ИИ! Следуй миссии, но не бросай прогресс! 🤔
0
![ScottJackson]()
ScottJackson
April 18, 2025 at 3:56:57 AM EDT
일론이 OpenAI 입찰에서 철회한다고? 그건 정말 놀랍네요! 그래도 그들이 미션에서 벗어나고 있다면 이해가 가요. 하지만 974억 달러를 그냥 포기하는 건 큰 금액이죠. 해결되길 바래요, 다음에 무슨 일이 일어날지 궁금해요! 🤔
0
![LarryMartin]()
LarryMartin
April 17, 2025 at 7:52:25 PM EDT
일론이 오픈AI에 대한 입찰을 철회하겠다는 건 정말 놀랍네요! 비영리 원칙으로 돌아간다면 큰 금액을 포기할 준비가 되어 있어요. 드라마는 좋지만, 이게 옳은 결정인지 모르겠어요. 해결되길 바래요! 🤔
0
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August 13, 2025 at 11:00:59 AM EDT
Wow, Musk pulling back his $97.4B offer for OpenAI is wild! I get why he’s pushing for the nonprofit mission—ChatGPT’s roots are all about open research, not profit-chasing. But is this just him flexing or a real stand for ethics? 🤔 Curious to see how OpenAI’s board reacts.
0
July 27, 2025 at 9:19:30 PM EDT
Wow, Musk’s move to pull the OpenAI bid feels like a chess play! 🧩 If the board sticks to the nonprofit mission, it could keep AI development grounded, but I wonder if this is just Elon stirring the pot to push his own vision. What’s next for OpenAI’s direction? 🤔
0
April 20, 2025 at 1:49:03 PM EDT
¡El movimiento de Elon con OpenAI es bastante salvaje! Si la junta se mantiene en la misión original, él retirará su oferta masiva. Es genial que quiera mantenerlo sin fines de lucro, pero no estoy seguro de que eso sea realista en la carrera de IA actual. 🤔 ¿Qué piensas? Elon, sigue empujando los límites, pero tal vez encuentra un punto medio.
0
April 19, 2025 at 9:21:02 PM EDT
Ход Элона с OpenAI довольно дикий! Отозвать предложение на $97.4 млрд только для того, чтобы сохранить его некоммерческим? Это преданность делу, я полагаю. Но давай, Элон, нам нужны эти достижения в области ИИ! Следуй миссии, но не бросай прогресс! 🤔
0
April 18, 2025 at 3:56:57 AM EDT
일론이 OpenAI 입찰에서 철회한다고? 그건 정말 놀랍네요! 그래도 그들이 미션에서 벗어나고 있다면 이해가 가요. 하지만 974억 달러를 그냥 포기하는 건 큰 금액이죠. 해결되길 바래요, 다음에 무슨 일이 일어날지 궁금해요! 🤔
0
April 17, 2025 at 7:52:25 PM EDT
일론이 오픈AI에 대한 입찰을 철회하겠다는 건 정말 놀랍네요! 비영리 원칙으로 돌아간다면 큰 금액을 포기할 준비가 되어 있어요. 드라마는 좋지만, 이게 옳은 결정인지 모르겠어요. 해결되길 바래요! 🤔
0
