Elon Musk's $97.4B OpenAI Bid Clashes with His Lawsuit Claims

Elon Musk's attempt to acquire OpenAI for $97.4 billion contradicts his ongoing lawsuit against the AI company, OpenAI argued in a letter submitted to a U.S. federal court on Wednesday.

Musk, who co-founded OpenAI as a nonprofit in 2015 but later left, sued CEO Sam Altman and others in August, seeking to block OpenAI’s transition to a for-profit model. However, OpenAI claims Musk's recent acquisition bid undermines his own legal argument that the company’s assets should remain in a charitable trust and not be transferred for private gain.

In its court filing, OpenAI accused Musk of making an "improper bid to undermine a competitor." His investment group’s offer directly contradicts his legal stance, which asserts that OpenAI’s resources should not be monetized for private interests.

Musk has not publicly commented on the allegations. His lawsuit claims OpenAI’s pivot to a for-profit entity violates its original nonprofit mission. However, OpenAI argues that securing capital is essential for advancing AI technology.

Musk, the world’s richest man, launched a rival AI company, xAI, in 2023 after OpenAI's ChatGPT went viral in late 2022. His latest bid to buy OpenAI's assets raises questions about his motivations and legal consistency.

The legal battle between Musk and OpenAI could significantly impact the future of AI governance, corporate structure, and competition in the rapidly evolving artificial intelligence sector.