Musk says he’ll conform to take again OpenAI takeover bid, if Sam Altman stops from going for-profit – Firstpost

Elon Musk has thrown a curveball in his ongoing feud with OpenAI, making an unsolicited $97.4 billion bid for the nonprofit that controls the corporate. However there’s a situation—Musk says he’ll withdraw the provide if OpenAI scraps its plan to transition right into a for-profit enterprise.

This newest twist follows a protracted historical past of disagreements between Musk and OpenAI CEO Sam Altman, who co-founded the AI analysis lab collectively earlier than their relationship soured. With OpenAI transferring towards a public profit company construction, Musk is attempting to throw a wrench within the works, insisting that the corporate stick with its authentic nonprofit mission. Nonetheless, Altman has already rejected the bid outright.

Musk’s provide and its situations

Musk’s authorized crew confirmed the main points in a court docket submitting, stating that if OpenAI’s board commits to halting its shift to a for-profit mannequin, Musk will again off from the takeover try. Nonetheless, his demand appears extra symbolic than sensible, provided that Altman has already publicly dismissed the provide.

When OpenAI was first based, the corporate vowed to maintain its analysis unbiased from monetary pressures. Nonetheless, as AI improvement turned costlier, it launched a “capped-profit” mannequin, permitting it to boost funds whereas nonetheless aligning with its broader mission. The proposed restructuring would take this a step additional, turning OpenAI’s for-profit arm right into a Delaware-based public profit company (PBC), just like rivals Anthropic and Inflection AI.

Musk, who left OpenAI after his failed try to take over the corporate in 2018, has lengthy been crucial of its monetary partnerships, notably its shut ties to Microsoft. He has even filed a lawsuit in opposition to Altman and OpenAI, arguing that the corporate has strayed from its authentic mission.

A confrontation

Musk’s provide wasn’t simply rejected—it was mocked. Altman took to X (previously Twitter) to sarcastically reply, saying: “No thanks, however we’ll purchase Twitter for $9.74 billion if you need.” Musk then fired again, calling Altman a “swindler” and than “Rip-off Altman.”  

The alternate didn’t cease there. Altman later mentioned he believes Musk operates “from a place of insecurity”, including, “I really feel for the man. I don’t assume he’s a cheerful individual.”

Whereas their public jabs entertained the web, the deeper difficulty stays—who will management the way forward for synthetic intelligence? Musk’s personal AI firm, xAI, has been gaining momentum, however OpenAI continues to dominate the area. The newest twist within the rivalry got here when Donald Trump’s $500 billion “Stargate” AI infrastructure venture selected OpenAI as a key companion, leaving Musk’s xAI out of the deal. Trump even commented that Musk “hates one of many individuals within the deal.”

What is going to Musk do subsequent

Regardless of Altman’s rapid rejection, Musk’s bid may nonetheless complicate issues for OpenAI’s board. The Wall Road Journal has reported that the provide would possibly push OpenAI’s administrators to reassess the nonprofit’s worth, notably because it transitions to a for-profit mannequin. Even when Musk has no actual probability of shopping for OpenAI, his bid may drive conversations in regards to the firm’s future and monetary technique.

For now, Altman appears firmly in management, and OpenAI is transferring forward with its PBC restructuring. However with Musk’s authorized battle nonetheless ongoing, this feud is much from over.