Elon Musk's Bid for OpenAI Heats Up in Court
In a legal battle between billionaires Elon Musk and OpenAI CEO Sam Altman, the $97.4 billion offer for AI startup OpenAI has intensified.
OpenAI's Response
Altman claims Musk's buyout proposal undermines his lawsuit against OpenAI, which alleges that the startup's assets cannot be "transferred away" for "private gain." OpenAI's plans to transition to a for-profit entity prompted Musk's legal challenge.
Musk's Counterargument
Musk counters by stating he will withdraw his bid if OpenAI remains a charity. The legal battle stems from a restructure that began last year.
Antitrust Allegations
Musk seeks to halt the restructure while pursuing antitrust claims against OpenAI's partnership with Microsoft Corp.
Altman Rejects Buyout
Altman deems the offer as "an improper bid to undermine a competitor," emphasizing that OpenAI is "not for sale." He interprets Musk's overture as an attempt to hinder their progress.
Musk's Proposed Compromise
Musk agrees to drop his bid if OpenAI suspends the restructure. Altman refused the proposal before consulting OpenAI's board, which Musk claims is a breach of fiduciary duty.
Nonprofit to Commercial Transition
OpenAI maintains that the transition to a commercial entity is crucial for securing funding for its mission of developing artificial general intelligence (AGI).
Judge's Stance
Judge Yvonne Gonzalez Rogers expresses doubt in granting an immediate injunction against OpenAI, citing the lack of irreparable harm for Musk. However, she suggests allowing Musk to file a lawsuit.
OpenAI's Allegation
OpenAI argues that Musk's bid contradicts his court argument against asset transfers. According to OpenAI, Musk intends to transfer OpenAI's assets to himself for financial gain.
Case Details
Musk v. Altman, 24-cv-04722, is filed in the US District Court, Northern District of California (Oakland).