In court filings Wednesday, Elon Musk’s lawyers say that if the ChatGPT maker’s board of directors “holds the charity mission” and stops the company’s conversion to a for-profit organization, the billionaire will be the Openai nonprofit organization He said he would withdraw his $97.4 billion bid for the bid.
The filing filed in the U.S. District Court for the Northern District of California states that the offer to buy an open nonprofit is “serious” and that the nonprofit “issues that the arms chief buyer pays for the property. It must be compensated.”
“The charity assets need to proceed with sales. The mask-led consortium has submitted a serious offer. It will go to the charity to promote its mission.” “(But) Openai, Inc. Musk withdraws the bid as the board is ready to maintain the charity’s mission and stipulate that it adopts a signature “for sale” by halting conversions. ”
The filing is the latest development in the saga, which began Musk on Monday. His AI company, Xai; also a group of investors who offered to buy a nonprofit that effectively manages Openai for $97.4 billion. Openai CEO Sam Altman and the company’s board of directors quickly rejected the unsolicited proposal. In a statement, Andy Nussbaum, a lawyer representing Openai’s board, said Musk’s bid “does not set the value of (Openai’s) nonprofits” and the nonprofits were “not being sold.” He said.
Openai co-founder Musk filed a lawsuit against the company and Altman last year, claiming Openai is engaged in anti-competitive behavior and fraud.
Openai was founded as a nonprofit organization in 2019 before moving to a “capped for-profit” structure. The nonprofit is the sole control shareholder of Capped-Profit Openai Corporation, which maintains formal fiduciary responsibility for the nonprofit’s charter. Openai is currently in the process of restructuring. This time, we will be focusing on traditional commercial companies, especially public benefits corporations. However, Musk is trying to ban conversion through lawsuits.
In early filing Wednesday, Open Eye’s lawyers said inconsistency in his position in the court that “inappropriate bids to undermine competitors” and that the transfer of startup assets through restructuring would infringe its mission. The company called for a move to gain control of the company. As a charity trust.