- Musk's trust offered $97.4B in cash with a May 10, 2025 deadline, though the bid may be withdrawn if OpenAI remains a nonprofit.
- The offer includes demands for complete access to OpenAI's records and personnel during due diligence.
- OpenAI's legal team argues the bid contradicts Musk's lawsuit and may be an attempt to undermine a competitor
New details have emerged from Elon Musk's unsolicited $97.4 billion offer to acquire OpenAI, revealing a complex strategy that intertwines with his ongoing legal battle against the AI company's planned nonprofit conversion.
The full offer letter made public through recent legal filings, which includes venture capital firms 8VC and Vy Capital, has proposed an all-cash transaction with a firm deadline of May 10, 2025.
Despite OpenAI CEO Sam Altman's public dismissal of the offer, including a tongue-in-cheek counter-proposal to buy X for a fraction of the price, the company's board has yet to formally reject the bid.
The proposal includes comprehensive due diligence requirements, demanding full access to OpenAI's financial records, facilities, and personnel.
This aspect has raised concerns about potentially giving Musk's competing AI company, x.AI, access to sensitive information.
OpenAI's legal team has characterized the offer as "an improper bid to undermine a competitor" rather than a serious acquisition attempt.
In a significant development, Musk's legal team has indicated they would withdraw the offer if OpenAI commits to maintaining its nonprofit status.
This condition appears to conflict with Musk's ongoing lawsuit attempting to block OpenAI's conversion from a nonprofit, leading OpenAI's lawyers to argue that Musk "can't have it both ways."
The timing of this offer is particularly notable as Musk's estimated net worth has grown to approximately $400 billion following Donald Trump's election, though the bid itself would be financed through a consortium of investors rather than Musk's fortune.
Edited By Annette George
