“Musk May Drop $97 Billion OpenAI Bid If It Stays Non-Profit, Lawyers Say”
Elon Musk, the billionaire behind Tesla and SpaceX, has offered $97 billion to buy OpenAI’s non-profit arm, but his lawyers say he will withdraw the bid if OpenAI decides to stay non-profit. According to Reuters, Musk is trying to stop OpenAI, the company behind ChatGPT, from becoming a for-profit business. OpenAI argues that becoming for-profit is necessary to raise more money and compete in the fast-growing AI industry.
Musk co-founded OpenAI in 2015 as a non-profit but left in 2018 over disagreements about its direction. Now, he owns a competing AI company called xAI. In a court filing, Musk’s lawyers said his bid is meant to support OpenAI’s original mission of benefiting humanity. However, if OpenAI insists on becoming a for-profit company, Musk wants the non-profit arm to be paid fair market value for its assets.
OpenAI’s CEO, Sam Altman, called Musk’s bid “ridiculous” and said the non-profit arm is not for sale. The company plans to reject the offer, as its mission is to ensure AI benefits everyone, not to make profits. OpenAI also pointed out that Musk’s bid contradicts his legal argument that the company’s assets should not be used for private gain.
Despite the tension, OpenAI is moving forward with plans to create a for-profit business while keeping its non-profit arm as a major shareholder. This shift has raised questions about how OpenAI will manage its assets and whether the non-profit will get a fair share of the company’s value.
Reuters reports that SoftBank is in talks to invest up to $40 billion in OpenAI, which could value the company at $300 billion. This means the non-profit arm could own a very valuable stake in the for-profit business. However, Musk’s bid and legal challenges could complicate OpenAI’s plans, as they may set a high price for the non-profit’s assets.
This situation highlights the growing competition in the AI industry and the challenges of balancing profit with a mission to benefit humanity.
As OpenAI moves forward, its decisions could shape the future of AI development and its impact on the world.
(Credit: This simplified explanation is based on original reporting by Reuters.)
https://www.reuters.com/technology/arm-recruits-customers-it-plans-sell-its-own-chips-2025-02-13