Musk Says He’ll Withdraw $97.4 Billion Bid for OpenAI If ChatGPT Maker Remains Nonprofit

The OpenAI logo is seen in front of an Elon Musk photo in this illustration taken March 11, 2024. (Reuters)
The OpenAI logo is seen in front of an Elon Musk photo in this illustration taken March 11, 2024. (Reuters)
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Musk Says He’ll Withdraw $97.4 Billion Bid for OpenAI If ChatGPT Maker Remains Nonprofit

The OpenAI logo is seen in front of an Elon Musk photo in this illustration taken March 11, 2024. (Reuters)
The OpenAI logo is seen in front of an Elon Musk photo in this illustration taken March 11, 2024. (Reuters)

Elon Musk says he will abandon his $97.4 billion offer to buy the nonprofit behind OpenAI if the ChatGPT maker drops its plan to convert into a for-profit company.

“If OpenAI, Inc.’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid,” lawyers for the billionaire said in a filing to a California court on Wednesday.

“Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets.”

Musk and a group of investors made their offer earlier this week, in the latest twist to a dispute with the artificial intelligence company that he helped found a decade ago.

OpenAI is controlled by a nonprofit board bound to its original mission of safely building better-than-human AI for public benefit. Now a fast-growing business, it unveiled plans last year to formally change its corporate structure.

Musk and his own AI startup, xAI, and a consortium of investment firms want to acquire the nonprofit’s controlling stake in the for-profit OpenAI subsidiary. The purpose, they said, would be to revert it back to its original charitable mission as a nonprofit research lab.

OpenAI CEO Sam Altman quickly rejected the unsolicited bid in a post on social media and told questioners at a Paris summit on AI that the company is not for sale. The chair of OpenAI's board, Bret Taylor, echoed those remarks at an event Wednesday.

Musk and Altman helped start OpenAI in 2015 and later competed over who should lead it before Musk resigned from the board in 2018. They've been in a long-running and bitter feud over the startup.

Musk again criticized Altman's management on Thursday during a videocall to the World Governments Summit in Dubai, United Arab Emirates, describing it as akin to a nonprofit aimed at saving the Amazon rainforest becoming a “lumber company that chops down the trees.”

Altman has repeatedly countered that Musk's legal challenges to OpenAI are motivated by his role as a competitor.

Musk has asked a California federal judge to block OpenAI's for-profit conversion on allegations ranging from breach of contract to antitrust violations. The judge has expressed skepticism about some of Musk's arguments but hasn't yet issued a ruling.



Impostor Uses AI to Impersonate Rubio and Contact Foreign and US Officials

Secretary of State Marco Rubio attends a signing ceremony for a peace agreement between Rwanda and the Democratic Republic of the Congo at the State Department, June 27, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
Secretary of State Marco Rubio attends a signing ceremony for a peace agreement between Rwanda and the Democratic Republic of the Congo at the State Department, June 27, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
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Impostor Uses AI to Impersonate Rubio and Contact Foreign and US Officials

Secretary of State Marco Rubio attends a signing ceremony for a peace agreement between Rwanda and the Democratic Republic of the Congo at the State Department, June 27, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
Secretary of State Marco Rubio attends a signing ceremony for a peace agreement between Rwanda and the Democratic Republic of the Congo at the State Department, June 27, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

The State Department is warning US diplomats of attempts to impersonate Secretary of State Marco Rubio and possibly other officials using technology driven by artificial intelligence, according to two senior officials and a cable sent last week to all embassies and consulates.

The warning came after the department discovered that an impostor posing as Rubio had attempted to reach out to at least three foreign ministers, a US senator and a governor, according to the July 3 cable, which was first reported by The Washington Post.

The recipients of the scam messages, which were sent by text, Signal and voice mail, were not identified in the cable, a copy of which was shared with The Associated Press.

“The State Department is aware of this incident and is currently investigating the matter,” it said. “The department takes seriously its responsibility to safeguard its information and continuously takes steps to improve the department’s cybersecurity posture to prevent future incidents.”

It declined to comment further due to “security reasons” and the ongoing investigation.

One of the officials said the hoaxes had been unsuccessful and “not very sophisticated.” Nonetheless, the second official said the department deemed it “prudent” to advise all employees and foreign governments, particularly as efforts by foreign actors to compromise information security increase.

The officials were not authorized to discuss the matter publicly and spoke on condition of anonymity.

“There is no direct cyber threat to the department from this campaign, but information shared with a third party could be exposed if targeted individuals are compromised,” the cable said.

The FBI warned in a public service announcement this past spring of a “malicious text and voice messaging campaign” in which unidentified “malicious actors” have been impersonating senior US government officials.

The scheme, according to the FBI, has relied on text messages and AI-generated voice messages that purport to come from a senior US official and that aim to dupe other government officials as well as the victim’s associates and contacts.

It is the second high-level Trump administration official to face such AI-driven impersonation.

The government was investigating after elected officials, business executives and other prominent figures received messages from someone impersonating President Donald Trump’s chief of staff, Susie Wiles. Text messages and phone calls went out from someone who seemed to have gained access to the contacts in Wiles’ personal cellphone, The Wall Street Journal reported in May.

Some of those who received calls heard a voice that sounded like Wiles, which may have been generated by artificial intelligence, according to the newspaper. The messages and calls were not coming from Wiles’ number, the report said.