Musk has been making an attempt to dam the startup he co-founded and later left from changing into a for-profit agency, a transfer essential for OpenAI to safe extra capital and keep forward within the AI race.
“If (the) OpenAI board is ready to protect the charity’s mission and stipulate to take the ‘on the market’ log out its property by halting its conversion, Musk will withdraw the bid,” the submitting mentioned.
If not, “the charity should be compensated by what an arms-length purchaser can pay for its property.” Musk’s “critical supply” was to additional the charity’s mission, it added.
Musk additionally owns a competing AI startup, xAI, launched in 2023.
OpenAI and Musk, CEO of Tesla and social media platform X, didn’t reply to requests for remark.
OpenAI’s board has not but obtained a proper bid from Musk’s group, a supply aware of the matter informed Reuters on Tuesday, including to the confusion over the unsolicited try.
Sam Altman, CEO of OpenAI, earlier this week mentioned the non-profit that controls the corporate was not on the market, calling the bid “ridiculous”.
Musk co-founded OpenAI with Altman in 2015 as a non-profit, however left in 2018 earlier than the corporate took off as a result of variations over its course and funding sources. Altman then turned CEO of OpenAI and launched a for-profit unit throughout the startup to safe funding from traders reminiscent of Microsoft.
Altman is now engaged on a plan to restructure the core enterprise right into a for-profit agency that may not be managed by its non-profit board. The non-profit will, nevertheless, live on and personal a stake within the for-profit firm. Musk has sued to stop this transition.
Several analysts have mentioned whatever the end result, the bid will complicate OpenAI’s efforts to show right into a for-profit firm because it may set a excessive flooring worth for the non-profit that controls the startup.
Questions have been rising on whether or not OpenAI would allocate its property to the non-profit arm pretty since Reuters first reported in September its plans for the change in construction.
SoftBank Group is in talks to steer a funding spherical of as much as $40 billion (roughly Rs. 3,47,940 crore) in OpenAI at a valuation of $300 billion, together with the brand new funds, Reuters reported in January, that means the non-profit may personal a stake with vital worth within the firm.
© Thomson Reuters 2025
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