A consortium led by Elon Musk will withdraw its $97.4 billion (about Rs 847.272 crore) and bid for Openai’s nonprofit sector if ChatGpt Maker drops plans to become a for-profit entity. Wednesday.
Musk has been trying to stop the startup he co-founded and later not becoming a for-profit company, which is crucial for Openai to ensure more capital and stay ahead of the AI race.
“If () the open board is ready to retain the charity’s mission and stipulates that ‘sell’ sign its assets by stopping its conversion, Musk will withdraw the bid.”
If not, “the charity must be compensated by the expenses paid by long-term buyers for their assets.” It added that Musk’s “serious proposal” was to further promote the charity’s mandate.
Musk also owns XAI, a competitive AI startup launched in 2023.
Tesla and social media platform X CEOs Openai and Musk did not respond to requests for comment.
Sources familiar with the matter told Reuters on Tuesday that Openai’s board of directors has not received a formal bid from Musk Group, adding to confusion over unsolicited attempts.
OpenAI CEO Sam Altman said earlier this week that the nonprofit that controls the company would not be sold, calling the bid “ridiculous”.
Musk co-founded OpenAI with Altman in 2015, a nonprofit organization, but left the company in 2018 due to differences in its direction and funding sources. Altman then became CEO of OpenAI and created a for-profit division within the startup to get funding from investors like Microsoft.
Altman is now developing plans to reorganize its core business into a for-profit company, which will no longer be controlled by its nonprofit board. However, nonprofits will continue to exist and own shares in for-profit companies. Musk has sued to prevent this transition.
Regardless of the outcome, bidding will make Openai’s efforts to become a for-profit company because it can establish high ground value for nonprofits that control the startup, several analysts said.
Whether Openai will fairly allocate its assets to nonprofits since Reuters first reported its structural change plan in September.
Softbank Group is valuing $300 billion, including new funds, at a valuation of $300 billion, in Openai. It means nonprofits can own it. , which means that nonprofits can own shares that are of significant value in the company.
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