Elon Musk is preparing to withdraw his $97.4 billion offer to buy OpenAI if the board of directors of the company, which developed ChatGPT, decides to abandon its plan to remain a non-profit organization. This comes according to media reports based on a court filing recently filed in court.
In the filing, Musk’s lawyers stated that his offer to buy OpenAI is a very “serious” offer. However, they indicated that if OpenAI’s board of directors decides to abandon the transformation of the company into a for-profit entity, Musk will withdraw from his offer. At the same time, it was confirmed that the non-profit organization must receive compensation equal to what the buyer would pay for its assets.
For its part, OpenAI considered Musk’s actions an “improper attempt” aimed at undermining a competitor in the field. OpenAI’s lawyers explained that these actions threaten the company’s long-term fate.
OpenAI’s Beginning and Charitable Goal
In 2015, OpenAI was announced as a charitable organization, with the primary goal of building artificial intelligence that would improve humanity in general.
However, there have been notable changes to OpenAI’s organizational structure over time. Musk resigned from the company’s board of directors in 2018, with Sam Altman becoming CEO after that. In the following years, Altman began to reorient the company toward a for-profit model to expand fundraising from investors, such as Microsoft.
The shift toward a for-profit entity
Recently, Altman has begun to propose plans to transform OpenAI’s core activities into a for-profit entity. This would allow the organization to raise huge funds and increase its ability to develop advanced technologies in the field of artificial intelligence. However, the non-profit company will continue to operate, as it will retain a stake in the new for-profit entity, which raises controversy about this move and its goals.
Support for OpenAI
As these plans come to fruition, Musk has become increasingly concerned about the future of OpenAI. He believes that these shifts could undermine the company’s original founding goals. According to Musk, the company’s pursuit of profit could conflict with its core purpose of developing technology to serve society.
Legal dispute
In 2023, Musk filed a lawsuit against OpenAI and Altman, claiming that the company was deviating from its founding goals and that its transformation into a for-profit entity would be an illegal move. Musk claimed that this shift poses a threat to the principles on which the company was originally founded, which is harmful to the public interest.
Altman, on the other hand, has tried to counter these moves by Musk by clarifying his position publicly. In previous statements, Altman has said that OpenAI is not for sale, and that he is not considering accepting Musk’s offer. He added that if Musk wanted to buy the company, he should consider buying Twitter, which Musk bought in 2022 for $44 billion, rather than taking on OpenAI.
In contrast, OpenAI has received support from a group of investors and companies. Among them are firms such as Baron Capital Group, Valor Management, and Atreides Management, which have backed Musk’s bid. Musk’s lawyer, Toberoff, also noted that if OpenAI converts to a fully for-profit entity, the nonprofit should receive fair compensation for the assets that will transfer to the new company.
Toberoff adds that these assets represent technologies with significant impact in the field of artificial intelligence and deserve fair compensation if the board decides to convert to a for-profit entity. This illustrates the ongoing tensions within the company’s board about its future path.
Launching the “o3-mini” model and increasing competition
For its part, OpenAI announced the launch of a new AI model, called “o3-mini”. This model is considered a powerful tool aimed at improving efficiency and enhancing the ability to think in a similar way to humans. It also provides accurate answers in specialized fields such as programming, mathematics, and science. The launch of this model comes at a sensitive time, as many in the industry seek to compare OpenAI’s technologies with other models such as “DeepSeek” developed by a Chinese company.
The industry witnesses increasing interest in the “DeepSeek-R1” model, which outperforms American models like ChatGPT in some areas. DeepSeek’s low development cost compared to OpenAI’s technologies makes it a strong competitor. This has added to the heated debate about the cost and valuation of models developed in the field of artificial intelligence.
OpenAI’s financial aspects
Despite the developments in AI technology, OpenAI is still looking for huge sources of funding to support its future projects. Reports indicate that the company is in talks to obtain funding of up to $ 40 billion. If these negotiations are successful, OpenAI’s valuation could reach $ 300 billion. These steps underscore company’s desire to become a major player in AI, but they also raise concerns among some about the organization’s diminished focus on its charitable purpose.
OpenAI’s Future Challenges
OpenAI’s immediate future remains uncertain. There are many challenges the company may face, both in terms of internal structure and in competition with other companies. If tensions between Musk and Altman persist, the company may have to make critical decisions about its future structure and long-term goals.
As for users of OpenAI’s products, expectations indicate that companies and organizations will continue to benefit from these advanced technologies in various industries.
