Billionaire Elon Musk has stated that he will withdraw his $97.4 billion offer to acquire OpenAI’s nonprofit entity if the organisation halts its planned transition to a for-profit model.

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In a legal filing submitted to a California court on Wednesday, Musk’s lawyers said, “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 further stated that if the transition proceeds, OpenAI’s nonprofit entity should be compensated at market value.

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Earlier this week, Musk and a group of investors made an unsolicited bid to acquire OpenAI’s controlling nonprofit entity. The stated goal of the bid is to return OpenAI to its original mission as a nonprofit research organisation focused on developing artificial intelligence for public benefit. OpenAI, which was initially founded as a nonprofit, announced last year its plans to formally transition into a for-profit company.

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Musk’s offer has been rejected by OpenAI’s leadership. CEO Sam Altman stated in a social media post that the company is not for sale. At the artificial intelligence summit in Paris on Tuesday, OpenAI board chair Bret Taylor reiterated this stance.

Musk vs Altman

Musk and Altman were both involved in OpenAI’s founding in 2015. However, disagreements over leadership led Musk to resign from the board in 2018. Since then, the two have been engaged in an ongoing dispute over OpenAI’s direction and governance.

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During a video address to the World Governments Summit in Dubai on Thursday, Musk criticised OpenAI’s transition to a for-profit model. He compared it to a nonprofit dedicated to rainforest conservation becoming a commercial logging operation. Altman has previously dismissed Musk’s legal challenges, arguing they are motivated by his competitive interests in the AI sector.

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Musk has also filed a lawsuit in a California federal court seeking to block OpenAI’s transition on various legal grounds, including breach of contract and antitrust violations. The judge overseeing the case has expressed scepticism about some of Musk’s arguments but has not yet issued a ruling.