{"id":5770,"date":"2025-02-13T00:34:52","date_gmt":"2025-02-13T00:34:52","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/openai-questions-rationale-of-elon-musks-bid-to-control-the-company\/"},"modified":"2025-02-13T00:34:52","modified_gmt":"2025-02-13T00:34:52","slug":"openai-questions-rationale-of-elon-musks-bid-to-control-the-company","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/openai-questions-rationale-of-elon-musks-bid-to-control-the-company\/","title":{"rendered":"OpenAI Questions Rationale of Elon Musk\u2019s Bid to Control the Company"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">OpenAI\u2019s board of directors on Wednesday questioned the rationale of a $97.4 billion bid from Elon Musk and others to gain control of the high-profile artificial intelligence company.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Monday, a consortium of investors led by Mr. Musk <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/10\/technology\/elon-musk-openai-bid.html\" title=\"\">offered to buy<\/a> the assets of the nonprofit that controls the company, escalating a yearslong feud between Mr. Musk and OpenAI\u2019s chief executive, Sam Altman.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In a court filing on Wednesday, the company said Mr. Musk\u2019s bid contradicted legal claims the billionaire made in a lawsuit he brought against OpenAI last year. OpenAI argued in its filing that Mr. Musk said in his lawsuit the assets must remain with the nonprofit and could not be transferred to another entity for public gain.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The company is essentially accusing Mr. Musk of hypocrisy. In his lawsuit, he argued OpenAI must be governed by the nonprofit. Now, OpenAI contends, he is arguing the opposite.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The OpenAI board has not yet formally rejected the bid.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Marc Toberoff, a Los Angeles lawyer who filed the lawsuit against OpenAI on behalf of Mr. Musk, said in a statement to The New York Times on Wednesday: \u201cThe lawsuit is not about who controls OpenAI. It\u2019s about Sam Altman and OpenAI\u2019s misconduct.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If OpenAI\u2019s board \u201cis prepared to stipulate to take the \u2018For Sale\u2019 sign off the charity\u2019s assets in its so-called \u2018conversion,\u2019 Musk will withdraw his bid,\u201d Mr. Toberoff added, referring to OpenAI\u2019s efforts to sever itself from the nonprofit\u2019s control. \u201cBut, of course, OpenAI will never do that.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The bid from Mr. Musk\u2019s consortium could still complicate Mr. Altman\u2019s efforts to separate the company from the nonprofit board and raise the billions of dollars that OpenAI needs to build new technologies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">For more than a year, Mr. Altman and his colleagues have been working on <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/27\/technology\/openai-public-benefit-corporation.html\" title=\"\">a plan to shift control of the company<\/a> from the nonprofit to OpenAI\u2019s investors, including Microsoft and the investment firm Thrive Capital.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">OpenAI has been negotiating a <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/07\/technology\/openai-softbank-investment.html\" title=\"\">$40 billion fund-raising deal<\/a>, led by the Japanese conglomerate SoftBank. The new fund-raising round values OpenAI at $300 billion, according to three people with knowledge of the deal who spoke on the condition of anonymity.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The San Francisco company\u2019s unusual corporate structure provided an opening for Mr. Musk to meddle in that plan and make revamping OpenAI more expensive.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In order to separate from the nonprofit board, Mr. Altman and his colleagues must provide compensation. OpenAI might pay the nonprofit a one-time fee, for instance, or give it a minority stake in the company.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The nonprofit\u2019s assets, however, have not been given a value. Mr. Musk is trying to set one, and his offer could mean that OpenAI\u2019s for-profit arm would have to spend more to gain independence from the old nonprofit.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The clock is ticking for OpenAI to change how it operates. Under the terms of OpenAI\u2019s <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/10\/02\/technology\/openai-valuation-150-billion.html\" title=\"\">last investment round<\/a>, it must shift control of the company away from the nonprofit in less than two years. Otherwise, its funding will convert into debt, according to documents reviewed by The New York Times.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">(The Times has <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/12\/27\/business\/media\/new-york-times-open-ai-microsoft-lawsuit.html\" title=\"\">sued<\/a> OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit\u2019s claims.)<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Mr. Musk\u2019s aggressive move is the latest in a very personal fight with Mr. Altman that started 10 years ago as a partnership. They were part of the group that founded OpenAI as a nonprofit in 2015, saying they wanted to freely share their technologies with the world.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">When Mr. Musk left the organization three years later after a battle for control, Mr. Altman attached OpenAI to a for-profit company so he could raise the enormous amounts of money needed to build A.I. technologies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In late 2023, the nonprofit board suddenly fired Mr. Altman, saying it no longer trusted him to build A.I. for the benefit of humanity \u2014 which was one of the original principles of the nonprofit.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">He returned to the company in just five days and began stacking the board with his allies, while exploring ways of severing the nonprofit\u2019s control. If they severed the nonprofit\u2019s control, Mr. Altman and his allies believed, OpenAI would be more attractive to investors.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Before the bid that became public on Monday, Mr. Musk also moved to block the changes to OpenAI\u2019s management structure with a lawsuit filed in federal court last year.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/02\/12\/technology\/elon-musk-openai-response.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>OpenAI\u2019s board of directors on Wednesday questioned the rationale of a $97.4 billion bid from Elon Musk and others to<\/p>\n","protected":false},"author":1,"featured_media":5771,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[451,1230,213,2333,511,450,510,396,214,1231,216,1046],"class_list":["post-5770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-acquisitions-and-divestitures","tag-altman","tag-artificial-intelligence","tag-boards-of-directors","tag-elon","tag-mergers","tag-musk","tag-nonprofit-organizations","tag-openai-labs","tag-samuel-h","tag-softbank-corporation","tag-venture-capital"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - 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