OpenAI says Elon Musk's takeover bid contradicts his lawsuit against it: Report

Elon Musk co-founded OpenAI with CEO Sam Altman in 2015 as a not-for-profit entity, but sued it in August 2024 after it decided to become a for-profit entity.

Published on: Feb 13, 2025, 09:17:04 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Artificial Intelligence (AI) giant OpenAI said billionaire Elon Musk's bid to buy it clashes with his lawsuit against the company, news agency Reuters reported.

Elon Musk and Sam Altman had co-founded OpenAI as a non-profit in 2015. (AFP)

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Musk, who co-founded OpenAI with its CEO Sam Altman in 2015 as a not-for-profit entity, had sued it in August 2024 after it decided to become a for-profit entity, arguing that it shouldn't be for private gain.

However, this came long after Musk had left the organisation, much before the end of 2022, when its flagship chatbot, ChatGPT became famous.

Now, a consortium of investors led by Musk offered $97.4 billion to buy the assets of OpenAI's nonprofit this Monday.

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OpenAI wrote in its Federal court filing that this offer contradicts his earlier lawsuit and that it is "an improper bid to undermine a competitor."

This is because Musk's court filings asserted that OpenAI's assets must remain within a charitable trust and should not be transferred for private gain.

After Musk had left OpenAI, he founded a competing AI startup called xAI in 2023.

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OpenAI had stated that it wants to become a for-profit organization in order to secure the capital needed for developing the best AI models.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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