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Aconsortium of investorsled by Elon Musk ’s x. AIoffered to buy OpenAIfor $ 97.4 billion this week . OpenAI CEO Sam Altman hasdismissed the proposal , whichwould gumwood upOpenAI’splanned conversionfrom a non-profit-making , something Musk is attempting to block in alawsuit .
Altman ’s attorney indicate in a Wednesday filing that Musk ca n’t have it both room : attempt to bribe OpenAI ’s assets and also endeavor to kibosh it from changing its non-profit-making position . Musk ’s team responded that it would withdraw the bid if OpenAI cease itsattempts to convert itself from a non-profit-making .
Meanwhile , as a part of these filings , the fullletter of intentfrom Musk ’s squad to purchase OpenAI was made public .
Here are five key details we learned from that letter and other effectual filings to shed light on this ongoing , and rather messy , dispute .
Clear deadline set
The unasked offer from Musk ’s group comes with a specific expiration date : May 10 , 2025 . There are exceptions to the deadline if the passel is nail down beforehand , both sides agree to end treatment , or OpenAI formally rejects the crack in writing .
Despite Altman’spublic dismissals , including ajoking counterofferto buy X for a tenth part of the price , OpenAI ’s display board has n’t officially turn away the offer yet as boards are typically demand to de jure judge such pass , even from contender .
All-cash transaction
Musk ’s consortium , which includes VCs like Joe Lonsdale ’s 8VC and SpaceX investor Vy Capital , is offering exactly $ 97.375 billion to buy out OpenAI , and says in the letter of the alphabet 100 % of the purchase price “ would be pay in hard cash . ”
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This is notable since Musk has n’t shied aside from using debt in the past , borrowing $ 13 billionfrom banks to bribe Twitter ( now X ) in 2022 . His net worth has increased substantially since then , floating around $ 400 billion , according to some estimate , since the election of his new friend Donald Trump .
However , the letter call seven investor , including Musk ’s AI society x. AI , as well as unnamed “ others , ” meaning Musk is n’t using his personal luck to finance this .
Full access to books and personnel
Prior to fork over all that cash , the buyers require to examine OpenAI ’s fiscal and stage business record , along with access to OpenAI faculty for interviews . That intend everything from “ assets , facilities , equipment , Good Book , and record , ” fit in tothe letter .
While this is a normal part of due diligence , particularly for an pass as crowing as $ 97.4 billion , this could also give Musk ’s x. AI — an OpenAI challenger — access to sensitive home information . And once they ’ve realise it all , their diligence could also supply them with a reason to withdraw their go .
The offer could undermine Musk’s lawsuit
The $ 97.4 billion tender to acquire OpenAI contradicts Musk ’s sound claim that the startup ’s plus ca n’t be “ transferred away ” for “ individual again , ” OpenAI lawyersargued in a court filingin the lawsuit on Wednesday .
OpenAI suggested the offer is n’t serious , but “ an improper bid to undermine a competitor . ” However , Musk ’s consortiumsaystheir crack is indeed “ serious ” and that its cash would go to OpenAI ’s nonprofit to further its mission .
Musk may withdraw if OpenAI stays a nonprofit
Musk ’s legal squad say he will drop his bid to larn OpenAI if the board commits to keeping it as a nonprofit , according to acourt filing on Wednesday .
The filing indicate that Musk ’s buyout offer is a genuine one , stating that the non-profit-making should receive reasonable market value for its assets based on what an main buyer would pay .
This seems to corroborate what some pundits have alleged : thatthe offer was intended to labor upthe price Altman would have to pay up to take the company secret .
In astatement , the attorney representing OpenAI ’s plug-in tell Musk ’s bid “ does n’t set a value for [ OpenAI ’s ] non - profit ” and that the non-profit-making is “ not for cut-rate sale . ”
