Elon Musk, the renowned entrepreneur, and his AI startup, xAI, have made headlines with their bid to acquire a controlling stake in OpenAI’s for-profit subsidiary. The $97.4 billion offer follows OpenAI’s plans to formally change its corporate structure, a move that has sparked significant concerns from Musk. The ongoing dispute between Musk and OpenAI’s CEO, Sam Altman, has been marked by a long-running and acrimonious feud. Musk and Altman co-founded OpenAI in 2015, but their relationship soured when Musk resigned from the board in 2018.
This week, Musk approached OpenAI with an offer to acquire the company, driven by his opposition to OpenAI's plan to convert into a for-profit entity. OpenAI's decision to alter its corporate structure has led Musk to request a California federal judge to block the conversion on grounds of breach of contract and antitrust violations. In court proceedings, a judge has expressed skepticism regarding some of Musk's arguments.
Musk's lawyers have articulated his stance clearly:
"If OpenAI, Inc.’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid,”
Originates from: lawyers for Elon Musk
"Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets.”
Originates from: lawyers for Elon Musk
Despite Musk's considerable offer, OpenAI CEO Sam Altman has firmly rejected the bid, asserting that the company is not up for sale. Altman has accused Musk of using legal challenges as a strategic maneuver to compete with OpenAI. The rivalry between the two tech giants has been further fueled by Musk's criticisms of Altman's management, likening it to a nonprofit morphing into a "lumber company that chops down the trees."
The tension surrounding OpenAI's potential shift to a for-profit model underscores a broader debate about the role of ethics and profit in the field of artificial intelligence. Musk's opposition stems from a belief that such a conversion might compromise the original mission of OpenAI—a mission both he and Altman once shared.
