Elon Musk’s $97.4-Billion OpenAI Bid Clashes With His Own Lawsuit: All You Need To Know

Musk co-founded OpenAI in 2015 but later parted ways with the organisation before the explosive rise of ChatGPT in late 2022.

“Musk has contradicted himself when making an improper bid to undermine a competitor,” OpenAI stated.

Source : X/@ElonMuskOde

Elon Musk’s recent attempt to acquire OpenAI stands in direct conflict with his ongoing lawsuit against the artificial intelligence company, according to a letter OpenAI submitted to a US federal court on Wednesday, as reported by Reuters.

The letter highlights what OpenAI describes as a contradiction in Musk’s stance. On Monday, Musk and a group of investors made a $97.4 billion offer to buy the assets of OpenAI’s nonprofit arm. However, Musk has simultaneously been fighting OpenAI’s transition to a for-profit model, arguing in his lawsuit that the company’s assets should not be used for private financial gain.

“Musk has contradicted himself when making an improper bid to undermine a competitor,” OpenAI stated in its court submission.

Musk's History With OpenAI

The billionaire entrepreneur, who co-founded OpenAI in 2015 but later parted ways with the organisation before the explosive rise of ChatGPT in late 2022, took legal action against OpenAI CEO Sam Altman and other executives in August. His lawsuit seeks to block the company from shifting to a profit-driven model, contending that OpenAI’s assets must remain under a charitable trust and not be exploited for commercial benefit.

OpenAI argues that Musk’s acquisition proposal directly opposes his own legal arguments. The company pointed out that while Musk has insisted OpenAI’s assets should not be used for private financial gain, his latest bid aims to transfer full control of those assets to himself and his private investors.

Musk, who launched his own AI startup, xAI, in 2023, has been a vocal critic of OpenAI’s strategic direction. While OpenAI insists that transitioning to a for-profit model is necessary to secure sufficient funding for advancing AI research, Musk has argued that such a shift undermines the company’s original mission.