Elon Musk's x.AI-led consortium has made a staggering $97.4 billion bid to acquire OpenAI, but the offer has been met with resistance from OpenAI CEO Sam Altman. The proposed acquisition, which would be one of the largest in tech history, is part of a larger dispute between Musk and OpenAI over its planned conversion from a non-profit organization.

Altman's lawyers argued in a recent court filing that Musk cannot have it both ways, attempting to buy OpenAI's assets while simultaneously trying to block its conversion to a for-profit entity in an ongoing lawsuit. Musk's team responded that they would withdraw the bid if OpenAI ceased its attempts to convert its non-profit status.

The full letter of intent from Musk's team, made public as part of the legal filings, reveals several key details about the proposed acquisition. The unsolicited offer comes with a specific expiration date of May 10, 2025, and is contingent on OpenAI's board formally evaluating the proposal. Despite Altman's public dismissals, the board has not yet formally rejected the offer.

The acquisition would be an all-cash transaction, with Musk's consortium offering exactly $97.375 billion to buy out OpenAI. Notably, the letter states that 100% of the purchase price would be paid in cash, a departure from Musk's past dealings, which have involved debt financing. The consortium includes venture capital firms such as 8VC and Vy Capital, as well as unnamed "others," indicating that Musk is not using his personal fortune to finance the bid.

As part of the due diligence process, the buyers are seeking full access to OpenAI's financial and business records, as well as access to its staff for interviews. While this is a standard part of the acquisition process, it raises concerns about Musk's x.AI, an OpenAI competitor, gaining access to sensitive internal information.

The offer has sparked controversy, with OpenAI lawyers arguing that the bid is an attempt to undermine a competitor and is not a serious proposal. Musk's consortium, however, maintains that the offer is genuine and would provide fair market value for OpenAI's assets.

The lawsuit and proposed acquisition have significant implications for the future of OpenAI and the broader AI industry. If successful, the acquisition would give Musk's x.AI significant control over OpenAI's assets and intellectual property, potentially altering the competitive landscape of the AI market.

As the dispute continues to unfold, it remains to be seen how OpenAI's board will respond to Musk's bid and whether the acquisition will ultimately move forward. One thing is clear, however: the fate of OpenAI and the future of AI development hang in the balance.