After leaving OpenAi as a Co-founder, Elon Musk is constantly trying to target OpenAi and its CEO Sam Altman for various reasons. But the recent offer given by Elon Musk to Sam Altman has surprised the world. Elon Musk offers Sam Altman to buy OpenAi for $97.4Billion. Obviously Sam Altman refused the offer and said that OpenAi is not for sale. Remember OpenAi planned to convert from non-profit to profit organization and this was the step that Elon Musk tried to stop and filed a case against OpenAi. The company wrote a letter to the Federal Court that this move made by Elon Musk denies his case against OpenAi. The team of Elon Musk wrote a letter to OpenAi that is published publicly. Below are 5 important points we got from the letter.
Setting a Deadline
Elon Musk has set a deadline to respond to the deal. The deadline of responding to a deal is May 10, 2025. There can be a change in the deadline if the deal is finalized, both parties end the discussion or OpenAi reject the offer formally after writing a letter.
Still the discussion is not closed because OpenAi has not formally rejected the offer. This is because OpenAi has to legally analyze such types of deals even from their competitors.
Transaction in Cash
The organization of Elon Musk that includes 8VCs and SpaceX investors has offered to buy $97.375 Billion to buy OpenAi. Moreover, the company of Elon Musk set the requirement that 100% of the amount will be paid in cash. This step is obvious when Elon Musk has not hesitated in using borrowed money in the past. In 2022, Elon Musk borrowed $13Billion from the bank for buying X. This means Elon Musk feels comfortable using debt for such big business deals.
Since then the Net worth of Elon Musk has greatly increased. According to the estimates his net worth increased around $400 Billion after the newly elected US President Donald Trump won the election.
Unlimited Access to Resources and Experts
Apart from the cash transaction, Elon Musk’s company also demanded access to the resources and experts of OpenAi. Basically Elon Musk wants to analyze the financial and business records of OpenAi. Moreover, he wants to access OpenAi staff for an interview.
This is a normal demand particularly for the offer and deal of such a big amount of $97.4Billion. Unlimited access means that Elon Musk will have access to sensitive internal information. Once they have seen it all, their diligence could also provide them with a reason to withdraw their offer.
Musk’s Lawsuit at Risk Due to the Offer
In the court hearing on Wednesday, the lawyer of OpenAi said, “The offer of Elon Musk of buying OpenAi in $97.4Billion challenges his own legal claim that the startup’s assets cannot be “transferred away” for “private again”.
Also OpenAi suggested that the buying offer given by Elon Musk is nothing just to challenge the competitor. In response to this, the company of Elon Musk says that indeed their offer is serious and that its cash would go to OpenAi’s non-profit to further its mission.
Elon Musk might Pull off if OpenAi Remains a Nonprofit
The legal team of Elon Musk in a court hearing offers to decrease the purchasing cost if OpenAi remains a nonprofit organization. The lawyers of Elon Musk state that the purchasing offer of Elon Musk is serious. Also they stated that the nonprofit will receive the fair market value for its assets based on what an independent buyer would pay.
This argument seems valid to what some of the experts have alleged. They say that the offer was intended to increase the price Sam Altman would have to pay to take the company private. The lawyer of OpenAi said that the Elon Musk offer has not set a value for OpenAi’s non-profit organization and also the nonprofit is not for sale.
