Tech Desk 
Feb 14, 2025
In the latest development unfolding in the melodrama revolving around Elon Musk-led $97.4 billion bid for OpenAI acquisition, it emerged on Thursday that the tech billionaire would withdraw the offer if OpenAI's board of directors would keep the artificial intelligence (AI) pioneer non-profit.
Citing court documents submitted by Musk's lawyer, Reuters highlighted that the reversal of the takeover bid was on the condition of OpenAI becoming a non-profit “charity” model.
A group of investors led by Musk on Monday made an offer to take control of the maker behind ChatGPT, the leading AI chatbot, which was downplayed by OpenAI CEO Sam Altman.
The filing states: “If OpenAI, Inc’s Board is prepared to preserve the charity’s mission and stipulate to take the [for sale] sign off its assets by halting its conversion, Musk will withdraw the bid," stated the court filing by Musk's lawyer.
“Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets,” it added.
Currently, OpenAI is operating on a hybrid structure, a non-profit with a money-making subsidiary, however, tensions began to escalate between Musk, OpenAI's co-founder who left the startup shortly before it took off, and Altman who views the transition to for-profit as a much-needed move for OpenAI to advance in AI space.
Musk and Altman founded the AI pioneer in 2015 alongside nine others, when the former injected the first seed funding of $45 million.
