OpenAI Says Elon Musk’s Takeover Bid Contradicts His Lawsuit Against It

Billionaire Elon Musk’s attempt to acquire OpenAI, which aims to become a for-profit organization, conflicts with his lawsuit claiming that the assets of the ChatGPT creator should not be used for personal profit, OpenAI stated in a letter submitted to a federal court on Wednesday.

On Monday, a group of investors spearheaded by Elon Musk proposed $97.4 billion (approximately Rs. 8,45,924 crore) to acquire the assets of OpenAI’s nonprofit, in another strike from the world’s wealthiest individual against the Artificial Intelligence (AI) startup.

Musk filed a lawsuit against OpenAI CEO Sam Altman and others in August, requesting a US district judge to prevent OpenAI from shifting to a for-profit organization. In its letter, OpenAI stated that Musk had been inconsistent in his statements while making “an inappropriate attempt to weaken a competitor.”

Musk’s legal documents claim that OpenAI’s resources must stay within a charitable trust and must not be moved for personal profit. In contrast, OpenAI mentioned that his suggested acquisition aims to transfer all assets of OpenAI to him and his private investors.

Musk’s representatives did not reply to an emailed inquiry for a comment. Musk established OpenAI alongside Altman in 2015 as a nonprofit but departed prior to the viral emergence of ChatGPT at the close of 2022. In 2023, he established the rival AI startup xAI. OpenAI has expressed its intention to transition into a for-profit entity to obtain the funding essential for creating top-tier AI models.