A consortium of scatterors led by Elon Musk’s x.AI proposeed to buy OpenAI for $97.4 billion last week. OpenAI CEO Sam Altman has diswatched the proposal, which would gum up OpenAI’s computed conversion from a non-profit, someslfinisherg Musk is trying to block in a litigation.
Altman’s lawyers talk aboutd in a Wednesday filing that Musk can’t have it both ways: try to buy OpenAI’s assets and also try to stop it from changing its non-profit status. Musk’s team replyed that it would retreat the bid if OpenAI finishd its trys to alter itself from a non-profit.
Meanwhile, as a part of these filings, the filled letter of intent from Musk’s team to buy OpenAI was made accessible.
Here’s 5 key details we lobtained from that letter and other lterrible filings to shed airy on this ongoing, and rather disorderly, dispute.
Clear deadline set
The unask fored propose from Musk’s group comes with a definite expiration date: May 10, 2025. There are exceptions to the deadline if the deal is concluded beforehand, both sides consent to finish talkions, or OpenAI createpartner refuses the propose in writing.
Despite Altman’s accessible diswatchals, including a joking counterpropose to buy X for a tenth of the price, OpenAI’s board hasn’t createpartner refuseed the propose yet as boards are typicpartner insistd to legpartner appraise such proposes, even from competitors.
All-cash transaction
Musk’s consortium, which includes VCs enjoy Joe Lonsdale’s 8VC and SpaceX scatteror Vy Capital, is proposeing exactly $97.375 billion to buy out OpenAI, and says in the letter 100% of the obtain price “would be phelp in cash.”
This is notable since Musk hasn’t shied away from using debt in the past, borrotriumphg $13 billion from prohibitks to buy Twitter (now X) in 2022. His net worth has incrmitigated substantipartner since then, floating around $400 billion, according to some appraises, since the election of his new partner Donald Trump.
However, the letter names seven scatterors, including Musk’s AI company X.AI as well as unnamed “others,” uncomardenting Musk isn’t using his personal fortune to finance this.
Full access to books and personnel
Prior to forking over all that cash, the buyers want to scatterigate OpenAI’s financial and business enrolls, aextfinished with access to OpenAI staff for interwatchs. That uncomardents everyslfinisherg from “assets, facilities, supplyment, books, and enrolls,” according to the letter.
While this is a normal part of due diligence, especipartner for an propose as huge as $97.4 billion, this could also give Musk’s x.AI – an OpenAI competitor – access to caring inside adviseation. And once they’ve seen it all, their diligence could also supply them with a reason to retreat their propose.
The propose could undermine Musk’s litigation
The $97.4 billion bid to obtain OpenAI impedes Musk’s lterrible claims that the commenceup’s assets can’t be “transferred away” for “personal aobtain,” OpenAI lawyers talk aboutd in a court filing in the litigation on Wednesday.
OpenAI proposeed the propose isn’t grave, but “an improper bid to undermine a competitor.” However, Musk’s consortium says their propose is indeed “grave” and that its cash would go to OpenAI’s non-profit to further its leave oution.
Musk may retreat if OpenAI stays a non-profit
Musk’s lterrible team says he will drop his bid to obtain OpenAI if the board pledges to persisting it as a non-profit, according to a court filing on Wednesday.
The filing talk abouts that Musk’s buyout propose is a genuine one, stating that the non-profit should get equitable taget cherish for its assets based on what an self-reliant buyer would pay.
This seems to validate what some pundits have alleged: that the propose was intfinished to drive up the price Altman would have to pay to get the company personal.
In a statement, the lawyer reconshort-terming OpenAI’s board shelp Musk’s bid “doesn’t set a cherish for [OpenAI’s] non-profit” and that the non-profit is “not for sale.”
