A consortium led by billionaire Elon Musk made a $97.4 billion deal for the ChatGPT creator on Friday, but OpenAI rejected it, claiming the business is not for sale and that any further bid would be dishonest.
Musk’s newest attempt to prevent the venture he co-founded with OpenAI CEO Sam Altman, but later departed, from turning into a for-profit company in an effort to raise more money and maintain its lead in the artificial intelligence race, is the unsolicited approach.
On X, the board quoted OpenAI Chairman Bret Taylor as saying, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity,”
In a statement, Musk’s attorney Marc Toberoff retorted that OpenAI is offering to sell ownership of the for-profit company, claiming that the action will “enrich its certain board members rather than the charity.”
In late December, OpenAI announced plans to restructure, removing the limitations placed on the business by its present nonprofit parent and establishing a public benefit corporation to facilitate “raise more capital than we’d imagined,”
Musk responded by calling Altman a “swindler” after Altman rejected the consortium’s offer on Monday with a “no thank you” post on X. Altman stated that OpenAI was not for sale to the news outlet Axios on Tuesday.
In a court filing on Wednesday, Musk’s attorneys stated that if OpenAI abandons its intentions to turn into a for-profit company, the consortium—which includes Musk’s own AI startup, xAI—would revoke its offer for the non-profit division of the company.
Musk’s lawyers, in a court filing on Wednesday, said the consortium, which includes Musk’s own AI startup xAI, would withdraw its bid for OpenAI’s non-profit arm if it drops plans to become a for-profit entity.
“Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients’ much publicized ‘bid’ is in fact not a bid at all,” According to a letter addressed to Toberoff on Friday and signed by William Savitt, the company’s attorney, the OpenAI board stated.
Hollywood power broker Ari Emanuel, Baron Capital, and Valor Equity Partners are among the other investors in the consortium.
Musk and Altman have been at odds for a long time.
Following his departure in 2019, Musk accused OpenAI of violating its initial aim by prioritizing business over the greater good of society by establishing a for-profit division that has attracted billions of dollars in financing.
In August of last year, Musk filed a lawsuit alleging breach of contract against Altman, OpenAI, and its largest supporter, Microsoft.
Musk requested a preliminary injunction from a federal court in November to prevent OpenAI from transitioning to a for-profit organization.
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