Elon Musk’s consortium, led by x.AI, has dramatically entered the scene with a $97.4 billion all-cash offer to buy OpenAI—a proposal that has stirred up a whirlwind of legal and strategic drama. The full letter of intent, now public, unveils the intricate details of the bid, including a firm deadline of May 10, 2025, a rigorous due diligence process where Musk’s team will examine OpenAI’s books and personnel, and a condition that ties the bid’s continuation to OpenAI’s decision to convert from nonprofit status. OpenAI CEO Sam Altman has already dismissed the bid, arguing that Musk’s dual approach (buying the company while trying to block its nonprofit conversion) is contradictory, and the dispute now unfolds in court as each side stakes its claim on the company’s future.

Key Points:

• Offer Deadline: Musk’s bid expires on May 10, 2025, with exceptions for earlier deal finalization or mutual agreement.
• All-Cash Deal: The consortium, including investors like 8VC and Vy Capital, is offering $97.375 billion in cash—not using debt this time.
• Due Diligence Requirements: Musk’s team demands full access to OpenAI’s financial records, assets, and key personnel interviews, which is standard practice but also a potential loophole to withdraw the offer.
• Legal Contradictions: The bid clashes with Musk’s lawsuit claims that OpenAI’s assets can't be “privatized,” suggesting the offer might be a strategic move to influence OpenAI’s nonprofit structure.
• Conditional Withdrawal: Musk has pledged to pull back the offer if OpenAI commits to remaining a nonprofit, reinforcing the strategic ploy behind the bid.

Why did Musk’s consortium bring cash to a nonprofit fight? Because when you’re trying to buy an idea, you might as well bring a checkbook—and a good lawyer!
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