The consortium, including Musk’s AI startup xAI, would withdraw its bid for OpenAI’s non-profit arm if it drops plans to become a for-profit entity, the billionaire’s lawyers said in a court filing on Wednesday.
“Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients’ much publicized ‘bid’ is in fact not a bid at all,” the OpenAI board said, according to a letter signed by William Savitt, a lawyer representing the company, sent to Toberoff on Friday.
Other investors in the consortium include Valor Equity Partners, Baron Capital and Hollywood power broker Ari Emanuel.