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How Musk’s $97.4B Bid Could Gum Up OpenAI’s For-Profit Conversion
Elon Musk’s $97.4 billion offer to acquire OpenAI may have thrown a wrench into the nonprofit’s plans to convert into a for-profit company.
Musk’s bid, which is likely contingent on the acquisition of OpenAI assets and intellectual property, could potentially gum up the works of the organization’s restructuring plans. According to sources familiar with the matter, any deal would require approval from OpenAI’s board of directors.
While it’s unclear if Musk’s offer will be accepted, his involvement could create a dilemma for the board, which has been working to restructure OpenAI as a for-profit company. As part of this process, OpenAI was in talks with investors and other potential partners to raise capital and rebrand itself as a for-profit entity.
The board is likely to side with Sam Altman, who has been leading the effort to convert OpenAI into a for-profit company. Nearly all the directors joined after he was briefly fired, then rehired, by the nonprofit’s board in late 2023.
Musk’s bid could raise the potential market value of OpenAI’s assets, forcing the organization to raise more capital than it originally anticipated and potentially complicating talks with existing backers.
Source: techcrunch.com
