{"id":22156,"date":"2025-02-13T16:10:56","date_gmt":"2025-02-13T17:10:56","guid":{"rendered":"http:\/\/medexperts.pro\/?p=22156"},"modified":"2025-02-13T17:32:39","modified_gmt":"2025-02-13T17:32:39","slug":"elon-musk-says-he-will-drop-openai-bid-if-company-preserves-nonprofit-mission","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=22156","title":{"rendered":"Elon Musk Says He Will Drop OpenAI Bid if Company Preserves Nonprofit Mission"},"content":{"rendered":"
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In a court filing, Mr. Musk said he and other investors would pull their $97.4 billion bid if OpenAI withdrew its plan to change its structure.<\/p>\n

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Elon Musk said in a court filing late Wednesday that he would withdraw his $97.4 billion bid to control OpenAI if the company dropped a longstanding effort<\/a> to change its corporate structure.<\/p>\n

Mr. Musk and a consortium of investors had offered on Monday to buy<\/a> the assets of the nonprofit that controls OpenAI, escalating a yearslong feud between Mr. Musk and OpenAI\u2019s chief executive, Sam Altman, over the future of artificial intelligence. Mr. Altman is in the middle of changing OpenAI\u2019s corporate structure by shifting control of the company from the nonprofit to OpenAI\u2019s investors, including Microsoft.<\/p>\n

Two days later, OpenAI\u2019s board of directors questioned the bid\u2019s rationale and accused Mr. Musk of hypocrisy<\/a>. Within hours, Mr. Musk\u2019s legal team replied with the new court filing saying they would drop the bid if OpenAI\u2019s board of directors agreed to preserve the mission of the nonprofit and \u201ctake the \u2018for sale\u2019 sign off its assets.\u201d<\/p>\n

The feud between Mr. Musk and Mr. Altman is deeply personal. Mr. Musk helped found OpenAI as a nonprofit in 2015, along with Mr. Altman and others. When Mr. Musk left the organization in 2018 after a battle for control, Mr. Altman attached OpenAI to a for-profit company so he could raise the large amounts of money needed to build A.I. technologies.<\/p>\n<\/div>\n<\/div>\n

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The nonprofit retained control of the company. Last year, Mr. Altman and his colleagues began working on a plan to shift control of the company<\/a> from the nonprofit to OpenAI\u2019s investors. Mr. Musk\u2019s bid could complicate that plan.<\/p>\n

To separate OpenAI from the nonprofit board, Mr. Altman and his colleagues must provide compensation. OpenAI might pay the nonprofit a fee, for instance, or give it a minority stake in the company.<\/p>\n

But the nonprofit\u2019s assets have not been given a value. Mr. Musk is trying to set one with his bid, which could mean that OpenAI\u2019s for-profit arm would have to spend more to gain independence from the nonprofit.<\/p>\n

OpenAI is unlikely to drop its plan to separate from the nonprofit. Under the terms of its last investment round<\/a>, it must shift control of the company away from the nonprofit in less than two years. Otherwise, its funding will convert into debt, according to documents reviewed by The New York Times.<\/p>\n

Mr. Musk is also suing OpenAI to try and block its plans to restructure.<\/p>\n

OpenAI is currently working to complete a $40 billion fund-raising deal<\/a> that would nearly double its valuation from just four months ago to around $300 billion.<\/p>\n<\/div>\n<\/div>\n

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(The Times has sued<\/a> OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit\u2019s claims.)<\/p>\n<\/div>\n<\/div>\n

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In a court filing, Mr. Musk said he and other investors would pull their $97.4 billion bid if OpenAI withdrew its plan to change its structure.Elon Musk said in a court filing late Wednesday that he would withdraw his $97.4 billion bid to control OpenAI if the company dropped a longstanding effort to change its corporate structure.Mr. Musk and a consortium of investors had offered on Monday to buy the assets of the nonprofit that controls OpenAI, escalating a yearslong feud between Mr. Musk and OpenAI\u2019s chief executive, Sam Altman, over the future of artificial intelligence. Mr. Altman is in the middle of changing OpenAI\u2019s corporate structure by shifting control of the company from the nonprofit to OpenAI\u2019s investors, including Microsoft.Two days later, OpenAI\u2019s board of directors questioned the bid\u2019s rationale and accused Mr. Musk of hypocrisy. Within hours, Mr. Musk\u2019s legal team replied with the new court filing saying they would drop the bid if OpenAI\u2019s board of directors agreed to preserve the mission of the nonprofit and \u201ctake the \u2018for sale\u2019 sign off its assets.\u201dThe feud between Mr. Musk and Mr. Altman is deeply personal. Mr. Musk helped found OpenAI as a nonprofit in 2015, along with Mr. Altman and others. When Mr. Musk left the organization in 2018 after a battle for control, Mr. Altman attached OpenAI to a for-profit company so he could raise the large amounts of money needed to build A.I. technologies.The nonprofit retained control of the company. Last year, Mr. Altman and his colleagues began working on a plan to shift control of the company from the nonprofit to OpenAI\u2019s investors. Mr. Musk\u2019s bid could complicate that plan.To separate OpenAI from the nonprofit board, Mr. Altman and his colleagues must provide compensation. OpenAI might pay the nonprofit a fee, for instance, or give it a minority stake in the company.But the nonprofit\u2019s assets have not been given a value. Mr. Musk is trying to set one with his bid, which could mean that OpenAI\u2019s for-profit arm would have to spend more to gain independence from the nonprofit.OpenAI is unlikely to drop its plan to separate from the nonprofit. Under the terms of its last investment round, it must shift control of the company away from the nonprofit in less than two years. Otherwise, its funding will convert into debt, according to documents reviewed by The New York Times.Mr. Musk is also suing OpenAI to try and block its plans to restructure.OpenAI is currently working to complete a $40 billion fund-raising deal that would nearly double its valuation from just four months ago to around $300 billion.(The Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit\u2019s claims.)<\/p>\n","protected":false},"author":1,"featured_media":22158,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-22156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/22156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22156"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/22156\/revisions"}],"predecessor-version":[{"id":22159,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/22156\/revisions\/22159"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/22158"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}