Elon Musk Withdraws Bid for OpenAI Amid Escalating Feud
Elon Musk has withdrawn his $97.4 billion bid to acquire OpenAI, the nonprofit foundation behind ChatGPT. The move comes as Musk and OpenAI CEO Sam Altman continue their escalating feud over the company's transition to a for-profit model.
Musk's Withdrawal Conditions
Musk's lawyers stated that he would withdraw the bid if the OpenAI board agreed to:
* Preserve the organization's charitable mission
* Halt the conversion to a for-profit enterprise
Altman's Breach of Duty Allegation
Musk's lawyers claim that Altman violated his fiduciary duties by unilaterally rejecting the takeover bid before the board could review it. They contend that this action represents Altman's "adverse domination of the Board."
OpenAI's Response
OpenAI has not yet received a formal bid from Musk's investor group. However, in a court document, OpenAI stated that Musk's bid contradicts his lawsuit claim that the company's assets should not be used for profit.
Musk Criticizes Stargate Partnership
Following the announcement of a joint venture between OpenAI, Oracle, and SoftBank, Musk criticized the initiative on social media, claiming that the companies involved lacked the necessary funding. Altman responded by inviting Musk to visit an AI development site in Texas.
Altman's Comments on Musk's Bid
Altman has described Musk's bid as an attempt to "slow us down" and accused him of employing various tactics, including lawsuits, to hinder OpenAI's progress.
Musk's Renewed Concerns
Musk expressed concerns that OpenAI's transformation into a for-profit entity represents an excessive departure from its nonprofit mission. He stated that "completely deleting the nonprofit" was unacceptable.
Ongoing Legal Battle
The ongoing legal battle between Musk and OpenAI is expected to extend into 2027 before reaching a jury trial.