Investing.com - Elon Musk is prepared to withdraw his $97.4 billion offer for OpenAI's non-profit operations if the ChatGPT-maker's board of directors ditches a plan to become a for-profit entity, according to media reports citing a court filing.
In a filing by the billionaire's lawyers in the U.S. District Court for the Northern District of California, Musk's bid for OpenAI's non-profit was described as "serious."
But it noted that, should OpenAI's board "stipulate to take the 'for sale' sign off its assets" by halting a planned conversion to a for-profit group, Musk will drop his unsolicited offer, which he made along with a consortium of other investors.
If it does not, the non-profit "must be compensated by what an arms-length buyer will pay for its assets," the filing added.
Attorneys for OpenAI, meanwhile, have called Musk's actions "improper" and designed to "undermine a competitor."
Tech executives including Musk and Sam Altman first announced the launch of OpenAI as a charitable organization in 2015, although Musk later left the company. Altman eventually became CEO of OpenAI, and oversaw the creation of a for-profit arm that aimed to raise money from investors, including software giant Microsoft (NASDAQ:MSFT).
Altman is now planning to turn the core business of OpenAI into a for-profit group as well. The non-profit would continue to exist, however, and have a share in the for-profit company -- a restructuring that Musk has moved to block. Musk has previously sued OpenAI and Altman, alleging that the firm is engaging in anticompetitive behavior.
Earlier this week, Altman said "no thank you" to Musk's offer, Reuters reported. Altman told the news service that OpenAI is not for sale.