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In a lawcourt filing on Wednesday , lawyers for Elon Musk enounce the billionaire will withdraw his $ 97.4 billion command for OpenAI ’s nonprofit organization if the ChatGPT maker ’s board of film director “ preserve the charity ’s missionary work ” and staunch the company ’s conversion to a for - profit .
The filing , submitted to the U.S. District Court for the Northern District of California , claims that Musk ’s pass to buy OpenAI ’s nonprofit is “ serious ” and that the non-profit-making “ must be compensate by what an arms - distance emptor will devote for its assets . ”
“ Should … the charity ’s assets proceed to sale , a Musk - direct consortium has submitted a serious offer … that would go to the Polymonium caeruleum van-bruntiae in furtherance of its mission , ” the filing reads . “ [ However , if ] OpenAI , Inc. ’s Board is inclined to preserve the charity ’s mission and condition to take the ‘ for sale ’ star sign off its assets by hold its conversion , Musk will take the bid . ”
The filing is the latest evolution in a saga that began on Monday , when Musk ; his AI companionship , xAI ; and a mathematical group ofinvestorsoffered to bribe the nonprofit that effectively governs OpenAI for $ 97.4 billion . OpenAI CEO Sam Altman and the company ’s boardquickly dismissed the unsolicited proposal . In astatement , Andy Nussbaum , the counsel lay out OpenAI ’s board , order Musk ’s bid “ does n’t set a value for [ OpenAI ’s ] non-profit-making ” and that the non-profit-making is “ not for cut-rate sale . ”
Musk , an OpenAI co - founder , last year brought a lawsuit against the company and Altman that aver that OpenAI engaged in anticompetitive behavior and pretender , among other offenses .
OpenAI was founded as a not-for-profit before it transitioned to a “ capped - earnings ” social organisation in 2019 . The non-profit-making is the sole keep in line shareholder of the cap - profit OpenAI pot , which retain stately fiduciary duty to the nonprofit ’s charter . OpenAI is now in the process of restructuring — this time to a traditional for - lucre company , specifically a public benefit corporation . But Musk , via the lawsuit , is seeking to enjoin the conversion .
In afiling earlier on Wednesday , attorneys for OpenAI call Musk ’s move to take control of the company “ an wrong bid to undermine a competitor , ” and a contradiction of his positioning in motor lodge that a transferee of the startup ’s assets through restructuring would offend its mission as a sympathetic trust .
