The consortium led by Musk, including his AI startup xAI, would withdraw its bid for OpenAI’s non-profit arm if it drops plans to become a for-profit entity, the billionaire’s lawyers said in a court filing on Wednesday.
As a result of that filing, it is now apparent that your clients’ much publicized ‘bid’ is in fact not a bid at all,” the OpenAI board said, according to a letter signed by William Savitt, a lawyer representing the company, sent to Musk’s lawyer Marc Toberoff on Friday.
After Musk’s departure in 2019, OpenAI created a for-profit arm that has drawn billions of dollars in funding, sparking allegations from Musk that the startup breached its original mission by putting profit ahead of the larger public good.
OpenAI on Friday rejected a $97.4bn bid from a consortium led by billionaire Elon Musk for the ChatGPT maker, saying the startup is not for sale.
The unsolicited approach is Musk’s latest attempt to block the startup he co-founded with CEO Sam Altman – but later left – from becoming a for-profit firm, as it looks to secure more capital and stay ahead in the AI race.
