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

OpenAI in its letter said Musk had contradicted himself when making "an improper bid to undermine a competitor."

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By Reuters | Updated: 13 February 2025 13:03 IST
Highlights
  • OpenAI said Musk has made an an improper bid to undermine a competitor
  • Musk founded OpenAI's competing AI startup xAI in 2023
  • OpenAI is trying to secure capital for developing the best AI models

Musk co-founded OpenAI with Altman in 2015

Photo Credit: Reuters

Billionaire Elon Musk's bid to buy OpenAI, which wants to be a for-profit entity, clashes with his lawsuit arguing that assets of the ChatGPT maker should not be for private gain, OpenAI wrote in a letter it submitted to a federal court on Wednesday.

On Monday, a consortium of investors led by Elon Musk offered $97.4 billion (roughly Rs. 8,45,924 crore) to buy the assets of OpenAI's nonprofit, in another salvo from the world's richest man against the Artificial Intelligence (AI) startup.

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Musk sued OpenAI CEO Sam Altman and others in August and has asked a US district judge to block OpenAI's attempt to transition to a for-profit entity.

OpenAI in its letter said Musk had contradicted himself when making "an improper bid to undermine a competitor."

Musk's court filings assert that OpenAI's assets must remain within a charitable trust and should not be transferred for private gain. That contrasts with his proposed acquisition which seeks to transfer all OpenAI assets to him and his private investors, OpenAI said.

Representatives for Musk did not respond to an emailed request for comment.

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Musk co-founded OpenAI with Altman in 2015 as a nonprofit but left before ChatGPT went viral at the end of 2022. He founded the competing AI startup xAI in 2023.

OpenAI has said it wants to become a for-profit organisation to secure the capital needed for developing the best AI models.

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© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

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Further reading: OpenAI, ChatGPT, Lawsuit, Elon Musk, Sam Altman
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