Musk will withdraw OpenAI bid if ChatGPT maker stays nonprofit, lawyers say
Elon Musk has stated that he will withdraw his $97.4 billion bid for OpenAI's nonprofit arm if the ChatGPT maker decides to remain a nonprofit entity, according to a recent court filing. The filing, submitted to the U.S. District Court for the Northern District of California on Wednesday, highlights Musk's condition regarding the future of OpenAI.
Conditional Bid Withdrawal
"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," the filing reads. It also emphasizes that if OpenAI continues with its conversion to a for-profit entity, the charity must be compensated based on the market value of its assets.
Background and Current Situation
OpenAI, initially established as a nonprofit organization in 2015, transitioned to a "capped profit" model in 2019. Elon Musk, a key figure in the formation of the AI research firm, had contributed $50 million towards its operations. However, since stepping down from the company's board in 2018, Musk has expressed concerns about OpenAI's shift towards commercial profitability.
Musk's latest bid, made in collaboration with his AI company xAI and a group of investors, aims to acquire OpenAI's nonprofit arm. The offer, totaling $97.4 billion, was met with resistance from OpenAI's CEO, Sam Altman, who accused Musk of attempting to impede competition within the AI sector.
Stance on Nonprofit Status
During a recent appearance at the World Governments Summit in Dubai, Elon Musk reiterated his position on OpenAI's nonprofit status. He emphasized the initial intention of OpenAI to operate as a nonprofit entity focused on open-source contributions. Musk drew parallels to environmental causes, stating that converting a nonprofit like OpenAI into a for-profit entity is akin to exploiting natural resources for financial gain.
Response and Future Direction
OpenAI has yet to officially comment on Musk's bid withdrawal condition. Supporters of the organization's shift towards becoming a fully for-profit public benefit corporation argue that this transition will enhance scalability and investor appeal. Sam Altman's decision to move towards a capped-profit structure was reportedly influenced by the cessation of funding from Musk.
As discussions around the future of OpenAI continue, Elon Musk's ultimatum underscores the ongoing debate regarding the balance between profit motives and altruistic goals within the realm of artificial intelligence research.
