Elon Musk has declared that he will retract his **$97.4 billion offer** to take over OpenAI if the organization ceases its shift towards a **for-profit model**.

This recent development in Musk’s ongoing confrontation with OpenAI was disclosed in a **court filing** on Wednesday, as noted by CNBC. The document, presented to the **U.S. District Court of the Northern District of California**, asserts:

*”Should OpenAI, Inc.’s Board agree to uphold the charity’s mission and agree to remove the ‘for sale’ notice from its assets by stopping its transformation, Musk will withdraw the offer. Failing that, the charity ought to be compensated at what an independent buyer would pay for its assets.”*

### Musk’s Proposal and OpenAI’s Reaction

On Monday, Musk, along with a consortium of investors, made an **unsolicited proposal** to acquire OpenAI. The organization currently functions as a **capped-profit subsidiary** within a nonprofit framework but has been aiming for a **completely for-profit status** since September 2024.

Musk, a co-founder of OpenAI in 2015, asserts to have contributed **$50 million** to the organization during its formative years. However, OpenAI **transitioned to a capped-profit structure in 2019** and has been progressing toward a **conventional for-profit model** since then.

In light of this change, Musk **filed a lawsuit against OpenAI**, alleging that the company committed **breach of contract** by neglecting its initial **nonprofit, open-source mission** to establish **artificial general intelligence (AGI) for the benefit of humanity**.

### Altman’s Dismissal and Musk’s AI Competition

In reaction to Musk’s proposal, OpenAI CEO **Sam Altman** rejected the offer in a message on X (formerly Twitter), commenting:

*”No thank you, but we would purchase Twitter for $9.74 billion if you’re interested.”*

Adding further complexity, Musk operates his own **AI firm, xAI**, which is behind the development of the **X chatbot Grok**. During the **AI Action Summit in Paris**, Altman suggested that Musk’s lawsuit may be a strategy to **impede a rival**.

*”I think [the lawsuit is] to slow down a competitor and catch up with his thing, but I don’t really know,”* Altman remarked to CNBC.

Despite Altman’s dismissive position, Musk and his associates assert that their **offer is legitimate**, contingent upon OpenAI continuing its transition to a for-profit model and its **assets being available for acquisition**.