Elon Musk Says He Will Drop OpenAI Bid if Company Keeps Corporate Structure
Published On Feb 13, 2025, 12:10 PM
Elon Musk has stated that he will withdraw his $97.4 billion bid for OpenAI if the company abandons its plan to change its corporate structure from a nonprofit to a for-profit entity. This move escalates a longstanding dispute between Musk and OpenAI's CEO, Sam Altman, who has been working on the restructuring to attract more investment. Musk's bid is seen as a challenge to the ongoing shift, which is necessary for OpenAI to secure future funding without risking debt due to previous investment agreements. The company is currently aiming to raise $40 billion, nearly doubling its valuation to around $300 billion.
Stock Forecasts
MSFT
Negative
Musk's attempt to maintain OpenAI's nonprofit status could lead to uncertainty surrounding its future funding and operations, especially as investors like Microsoft are pushing for control. The resulting volatility in investor sentiment may negatively impact directly related stocks.
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