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TechCheck

Musk OpenAI bid, Plus Apple’s Alibaba teamup 2/13/25

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.856 Ratings

🗓️ 13 February 2025

⏱️ 8 minutes

🧾️ Download transcript

Summary

Elon Musk adding a new layer to his escalating legal fight with OpenAI and CEO Sam Altman. Plus, Apple is teaming up with Alibaba to bring Apple Intelligence to China as the iPhone maker faces fierce domestic competition.

Transcript

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0:00.0

Elon Musk adding a new layer to his escalating legal fight against Open AI and its CEO Sam Altman,

0:05.9

now saying he would withdraw his $97 billion bid for the startup's nonprofit arm if OpenAI stopped trying to become fully for profit.

0:15.5

Our Kate Rooney with the latest in today's tech check, he's been pretty consistent about what he wants here and what his concerns are.

0:21.6

Yeah, Sarah, he has not hit anything in terms of what he's looking for, but we did get the latest in all of his drama through a court filing last night, Musk's lawyers saying if Open AIsboard is prepared to preserve the charity's mission and stipulate to take the for-sale sign off of its assets by halting its conversion.

0:40.8

They say Musk will withdraw the bid.

0:43.0

Otherwise, the charity must be compensated by what an arm's-length buyer would pay for its assets.

0:49.2

Musk does claim that the offer is serious.

0:52.1

And blocking that for-profit conversion, as you mentioned, Sarah,

0:55.2

it's been Musk's end goal this entire time. He's already sued Open AI, arguing that the company

0:59.6

violated its promise to prioritize the public good. And what is now a $157 billion AI startup was

1:06.1

initially established as a nonprofit. Musk was a co-founder. And on Monday, Musk kicked a lot of this off.

1:12.5

He and a group of investors submitted that bid we've been talking about to buy the nonprofit assets

1:17.1

for $97 billion. The crux of their argument is that the nonprofit should be compensated for giving

1:23.0

up control of what they call the most transformative technology of our time. And then last night,

1:28.7

we were from Open AI as well, responding for the first time, aside from what we heard from

1:33.3

Sam Altman on X or Twitter, in its own court filing. So lawyers for Open AI have questioned

1:39.7

Musk's motives here. He does have a competing startup at this point called XAI.

1:50.1

And they say and argue in this filing that Musk is contradicting his own legal claims with the bid.

1:53.1

They call it an improper bid to undermine a competitor.

2:00.7

And while Musk's filing, they say, asserts that open AI's assets need to remain within a charitable trust and should not be transferred for private gain.

2:01.0

At the same time, they argue that he is seeking to transfer all of Open AI's assets to himself

2:05.1

and some of these private investors for his economic benefit.

...

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