CNN —

Elon Musk has indicated his willingness to abandon the pursuit of acquiring OpenAI if the organization continues to operate under its current structure, which designates it as a nonprofit entity, despite being the foremost and most valuable AI firm in the world.

The conflict for control over OpenAI has taken on a personal dimension, unfolding in public between Musk and OpenAI CEO Sam Altman, as they vie for influence over the future of artificial intelligence. On Monday, Musk revealed that he heads a consortium of investors who have presented a $97.4 billion offer to purchase the company. However, he stated on Wednesday that he will retract this offer if OpenAI reaffirms its original mission.

“Should OpenAI, Inc.’s Board choose to uphold the charity’s mission and take the ‘for sale’ sign down by halting its transition, I will withdraw the bid,” Musk articulated in a court document released late Wednesday. “Otherwise, the charity deserves compensation equivalent to what an independent buyer would pay for its assets.”

Sam Altman has publicly criticized Musk’s offer, and the company’s filing in court on Wednesday challenged Musk’s justification for the bid, although it has not formally rejected it yet.

In its court submission, OpenAI accused Musk of being hypocritical. Musk had previously sued the organization in 2024 for what he claimed was a breach of its founding charter, insisting that it maintain its nonprofit status. Yet, the current bid reveals Musk’s intent to facilitate a sale—specifically, to himself.

“In this Court, Musk argues that OpenAI, Inc.’s assets cannot be transferred for private gain,” the company stated in legal documents. “However, out of court, those restrictions seem to vanish as long as Musk and his associates are the buyers. Essentially, Musk seeks to have OpenAI, Inc. transfer all its assets to him, benefiting himself and his competitive AI venture, along with selected private investors.”

A lawyer representing Musk did not respond promptly to a request for comments. Meanwhile, a legal representative for OpenAI affirmed that the organization is not for sale, asserting that it has no obligation to consider Musk’s offer as a nonprofit.

“The independent Board’s primary duty is to fulfill the mission of ensuring that AGI benefits all of humanity,” stated Andrew Nussbaum, counsel for OpenAI’s Board at Wachtell, Lipton, Rosen & Katz. “It is not a competitor’s role to determine what serves the best interests of OpenAI’s mission.”

OpenAI operates through a nonprofit that oversees OpenAI LP, a for-profit entity that has skyrocketed the firm’s value to around $100 billion within a few years, a feat largely attributed to Altman’s innovative leadership.

OpenAI plans to divest its for-profit branch to gain increased financial flexibility. Musk, who co-founded OpenAI but departed the organization, argues that this structural shift would betray OpenAI’s founding principles by prioritizing profit over the ethical development of its AI technologies.

Musk has a history of disputes with Altman and has previously initiated multiple legal actions against OpenAI and Altman, alleging that the AI organization misrepresents itself as a charitable endeavor.

“OpenAI has advanced significantly while functioning with both nonprofit and for-profit roles. What they are trying to do now is effectively eliminate the nonprofit aspect, which is a step too far,” Musk remarked during a Q&A at the World Government Summit in Dubai on Thursday. “This situation is akin to funding a nonprofit dedicated to conserving the Amazon rainforest, only for it to turn into a lumber operation, cutting down trees for profit. You’d certainly question, ‘Hold on, that’s the exact opposite of what I supported.’”

In response, Altman described Musk as “unhappy and insecure,” suggesting, “I think he’s perhaps just trying to impede our progress.”

Report contributed by CNN’s Matt Egan.

This story is ongoing and will be updated as new information becomes available.