Elon Musk Threatens to Drop OpenAI Acquisition over Structure Concerns
Elon Musk has expressed willingness to abandon his $97.4 billion offer to acquire OpenAI if the company maintains its current structure. In a court filing, Musk stated that he would withdraw his bid if OpenAI's Board "preserves the charity's mission and halts its conversion" to a for-profit entity.
OpenAI CEO Sam Altman has publicly criticized the offer, while the company has questioned Musk's motives. OpenAI is operated by a nonprofit that controls a for-profit entity, OpenAI LP. This structure has catapulted OpenAI's valuation to around $100 billion in a few years, with Altman credited for its success.
OpenAI plans to spin out its for-profit entity for financial flexibility. However, Musk, a co-founder who left the company, contends that this would violate its founding charter by prioritizing profit over ethical AI development.
This story is ongoing and will be updated as it develops.