Elon Musk and a group of investors have made a bold move to reclaim control of OpenAI, with his attorney, Marc Toberoff, confirming on Monday that a formal bid has been submitted to the company’s board of directors.
This unexpected offer could significantly disrupt OpenAI CEO Sam Altman’s ongoing plans to transition the organization into a for-profit entity and advance his ambitious $500 billion investment in artificial intelligence infrastructure through the “Stargate” joint venture, according to The Wall Street Journal.
Musk, who co-founded OpenAI in 2015 but left the organization in 2019, framed his bid as a necessary step to restore OpenAI’s original mission. In a statement delivered through his attorney, Musk emphasized that OpenAI had strayed from its founding principles. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated. “We will make sure that happens.”
Musk’s bid comes amid an ongoing legal battle between him and OpenAI. In March 2024, he filed a lawsuit against the organization, accusing its leadership of breaching their original agreements and engaging in unfair business practices.
Musk’s lawsuit argued that OpenAI, which was originally established as a nonprofit dedicated to developing artificial general intelligence (AGI) for the benefit of humanity, had abandoned that mission in favor of maximizing profits—particularly for Microsoft, which has heavily invested in OpenAI.
In the lawsuit, filed in San Francisco Superior Court, Musk alleged that OpenAI had effectively become a “closed-source de facto subsidiary” of Microsoft. “Under its new board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity,” the lawsuit stated.
At the heart of Musk’s legal challenge is the claim that OpenAI’s founding agreement included a commitment to operate as a nonprofit counterweight to Google’s DeepMind in the race toward AGI.
Musk contends that OpenAI was never meant to serve corporate interests but rather to ensure that AGI would be developed responsibly and ethically, with a focus on benefiting all of humanity rather than shareholders.
The transformation of OpenAI into a highly profitable AI powerhouse has sparked controversy within the tech industry, with critics arguing that the company’s close ties to Microsoft undermine its ability to function as an independent entity.
Microsoft’s substantial financial backing has provided OpenAI with the resources needed to push forward groundbreaking advancements in AI, but it has also raised concerns about the influence of corporate interests over the company’s direction.
Musk’s bid to reclaim OpenAI marks a significant escalation in the ongoing battle over the future of artificial intelligence. If successful, his move could force the company to return to its open-source roots and refocus on its original nonprofit mission.
However, with Microsoft’s deep financial involvement and Altman’s firm grip on the company’s strategic direction, Musk faces an uphill battle in his effort to regain control.
If the board rejects the offer, it could further intensify Musk’s legal efforts to challenge OpenAI’s direction in court. On the other hand, if the bid gains traction, it could reshape the future of OpenAI and the broader AI industry.
This is a developing story, and further updates are expected as the legal battle and corporate maneuvering continue.