A group led by Elon Musk plans to retract its bid of $97.4 billion (approximately Rs. 8,47,272 crore) for the non-profit division of OpenAI, should the company decide to abandon its shift towards a for-profit model, according to a court filing from Musk’s legal team submitted on Wednesday.
Musk has voiced resistance to the idea of OpenAI transitioning into a for-profit entity, an essential step for the organization to attract additional funding and maintain its competitive edge in the artificial intelligence sector.
The court document stated, “If the OpenAI board is prepared to uphold the charity’s mission and agree to remove the ‘for sale’ designation from its assets by ceasing its conversion, Musk will retract the bid.”
Conversely, if that does not occur, “the charity must receive compensation reflective of what a third-party purchaser would pay for its assets.” The filing characterized Musk’s proposal as a “serious offer” aimed at advancing the charitable objectives of OpenAI.
Musk is also the founder of xAI, a competing AI venture he established in 2023.
Neither OpenAI nor Musk, who also serves as CEO of Tesla and the social media platform X, responded to requests for comment.
A source familiar with the situation informed Reuters that the OpenAI board has not yet received an official bid from Musk’s consortium, adding to the uncertainty surrounding this unsolicited offer.
Earlier this week, Sam Altman, CEO of OpenAI, stated that the non-profit organization governing the company is not for sale, labeling Musk’s bid as “ridiculous.”
Musk co-founded OpenAI with Altman in 2015 as a non-profit but departed in 2018 due to disagreements regarding its future direction and funding strategies. Following Musk’s exit, Altman took the helm as CEO and initiated the establishment of a for-profit division to attract investments from firms like Microsoft.
Altman is currently developing a strategy to reorganize the main operations into a profit-oriented firm that will not be overseen by the non-profit board. Despite this change, the non-profit will continue to exist and maintain a stake in the for-profit entity. Musk has initiated legal action to halt this transition.
Analysts have suggested that the outcome of this bid may complicate OpenAI’s plans to evolve into a for-profit company, potentially establishing a minimum valuation for the non-profit that manages the startup.
Concerns have been raised about the equitable allocation of assets to the non-profit division since Reuters first disclosed the potential structural changes in September.
SoftBank Group is reportedly in discussions to lead a funding round for OpenAI up to $40 billion (approximately Rs. 3,47,940 crore), at a valuation of $300 billion, which could grant the non-profit a stake with considerable worth within the company, according to reports from January.
© Thomson Reuters 2025
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