Sam Altman seeks to use Elon Musk’s offer to acquire OpenAI in his favor in a legal dispute

Altman has requested a judge to review the offer letter submitted by Musk as part of a legal battle that has been ongoing for a year between the two tech figures.

According to Altman, this letter reveals a contradiction in Musk’s stance, as he opposes OpenAI’s attempts to become a for-profit entity.

In a court filing on Wednesday night, Altman asked a federal judge to review the letter sent by Musk on Monday, in which he offered $97.5 billion to acquire OpenAI.

This request, filed in a federal court in California, represents Altman’s latest move in his fight against Musk’s lawsuit, which seeks to prevent OpenAI from transitioning into a fully for-profit organization.

Altman argues that the letter is relevant to the case, as it demonstrates that Musk is acting inconsistently by opposing OpenAI’s efforts to generate profits. In his filing, he asks Judge Yvonne Gonzalez Rogers to allow the use of the letter as evidence and to include it in the documents already submitted to counter Musk’s request to halt OpenAI’s transition.

Musk’s offer letter was attached as an exhibit to Altman’s filing. In it, Altman’s lawyer, Jordan Eth, noted that the proposal was sent by a group of private investors, including Antonio Gracias and Gavin Baker, led by Musk in his role as CEO of xAI.

Eth stated that the letter represents an “unsolicited offer” to acquire all of OpenAI’s assets and argued that this offer is incompatible with Musk’s lawsuit, which claims that OpenAI must remain a non-profit entity. According to Eth, Musk seeks to benefit economically by acquiring OpenAI and transferring its assets for his own gain and that of his allies.

For his part, Musk’s lawyer, Marc Toberoff, called the letter “completely irrelevant” and argued that its inclusion would distract from the core issues of the case.

Altman has been vigorously defending OpenAI’s position in recent days, rejecting Musk’s request to halt what he considers an illegal suppression of competition and a betrayal of the organization’s non-profit principles. On Wednesday, Altman’s lawyer accused Musk of lacking evidence to support his claims.

Altman firmly rejected Musk’s acquisition offer, stating that OpenAI is “not for sale.” Additionally, Musk stated in a separate court filing that he would withdraw his $97.4 billion offer if OpenAI maintained its status as a non-profit organization.


By: Nestor Castillo, ForAllTechNews Director

Image Credit: Getty Images / CC BY 2.0 / Attribution 2.0 Generic


Discover more from ForAllTech

Subscribe now to keep reading and get access to the full archive.

Continue reading