Elon Musk’s Bid to Buy OpenAI Clashes with His Lawsuit, Company Tells Court

Billionaire Elon Musk’s attempt to acquire OpenAI contradicts his ongoing lawsuit against the company, in which he argues its assets should not be used for private gain, OpenAI told a US federal court on Wednesday.  

The artificial intelligence company submitted a letter to the court highlighting what it called a contradiction in Musk’s actions. 

On Monday, a consortium of investors led by Musk offered $97.4 billion to acquire OpenAI’s assets, just months after the Tesla and SpaceX CEO sued OpenAI’s leadership, including CEO Sam Altman, to block the company’s transition to a for-profit entity.  

OpenAI argued that Musk’s offer was an “improper bid to undermine a competitor” and ran counter to his legal claim that OpenAI’s assets must remain under a charitable trust. His lawsuit insists that OpenAI’s original nonprofit mission should be upheld, yet his acquisition bid seeks to transfer the company’s assets to himself and his private investors, OpenAI stated.  

Musk, who co-founded OpenAI in 2015 alongside Altman but left before the company’s ChatGPT chatbot became widely popular in 2022, has since launched his own AI company, xAI, in 2023.  

OpenAI has defended its move toward a for-profit model, arguing that significant investment is necessary to develop advanced AI models. Representatives for Musk have not responded to requests for comment on the matter.

Chioma Kalu

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