ISLAMABAD: OpenAI, the renowned artificial intelligence company, has argued that Elon Musk’s $97.4 billion takeover bid contradicts his lawsuit, which claims that the assets of the ChatGPT maker should not be used for private gain.
Musk, leading a consortium of investors, offered to purchase the assets of OpenAI’s nonprofit division, intensifying his challenge against the AI startup. The bid comes after Musk filed a lawsuit in August, aiming to block OpenAI’s plan to transition into a for-profit entity.
In a letter submitted to a federal court on Wednesday, OpenAI accused Musk of contradictory actions, calling his bid “improper” and an attempt to undermine a competitor.
Musk’s legal filings argue that OpenAI’s assets should remain within a charitable trust and not be transferred for personal benefit. However, OpenAI pointed out that Musk’s bid seeks to transfer all of its assets to himself and his private investors.
Musk’s representatives did not respond to a request for comment.
Musk co-founded OpenAI with CEO Sam Altman in 2015 as a nonprofit but stepped away before ChatGPT gained widespread attention in 2022. In 2023, Musk launched a competing AI company, xAI.
OpenAI has expressed its intention to become a for-profit organization to secure the necessary capital to develop cutting-edge AI models.
