Billionaire investor Elon Musk said that he will withdraw his $97.4 billion bid to acquire OpenAI if the latter stops the process of converting to a for-profit organization. Musk’s lawyers submitted the statement in court stating that Musk is willing to pull back if OpenAI is ready to maintain the charity’s mission and remain non-profit.
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Musk demands that OpenAI remove the “for sale” tag, failing which, the billionaire maker will continue with his “serious offer” to take control of the non-profit entity. Furthermore, the letter noted that if the conversion still continues, the charity must be awarded equal to what an arms-length buyer is willing to pay for its assets.
Musk’s Offer Complicates OpenAI’s For-Profit Ambitions
Since the Musk-led consortium made the offer to buy the ChatGPT maker, CEO Sam Altman and Musk have been at loggerheads. The duo has been hurling accusations at each other publicly. Altman clearly told the press that OpenAI was not on sale and rejected Musk’s bid. However, his ambition to turn the entity into a for-profit organization remains serious since Altman believes this would help in raising capital easily in the future.
The most important debate in this for-profit conversion hangs around how the Microsoft-backed (MSFT) private startup will value the non-profit that actually controls it. Altman wants to spin out the non-profit into an independent entity and has submitted a plan for the same to attorneys general in California and Delaware. Nonetheless, Musk’s bold $97.4 billion bid puts a sort of competitive price tag on the non-profit that might be difficult for other bidders to match.
Musk and Altman co-founded OpenAI in 2015 but the former resigned from the board in 2018 following disputes on the nature of the organization. Musk has been creating roadblocks for Altman’s ambitions since last year. In early February, Musk filed a lawsuit against Altman accusing him of giving more importance to profit than charity and violating the founding agreement. Meanwhile, Altman claims that Musk’s shenanigans are arising out of his insecurity and regret of leaving OpenAI, which has brought about a true AI revolution.
What Are the Best AI Stocks to Buy?
We used TipRanks’ Stock Comparison tool for Best Artificial Intelligence Stocks to understand how the listed AI companies are positioned since we cannot invest directly in OpenAI. Investors can invest in one of the companies listed below after thorough research.
Based on the data below, Wall Street is currently highly bullish on Nvidia (NVDA), Amazon (AMZN), Micron (MU), Meta Platforms (META), and Microsoft (MSFT). Among these “Strong Buy” stocks, analysts see the highest upside potential in Micron stock.
