This morning I have been perusing the (LARGE DEAL) case between Elon Musk and Sam Altman and OpenAI and all its related affiliates, from August 5, 2024 in the Northern District of California federal court : 24-cv-4722-YGR.
Which very many are not talking about so much. But I will. Again. Here is PRIOR POST from October 2024.
This follows the case of virtually the same vein in SF Superior Court, about which I posted previously. Among other things federal court is more expensive, but allows for more remedies and greater recovery. So the stakes are higher.
Yesterday was prompted by a remarkable exchange between Musk and Altman
»» begun by post on X by Elon OFFERING TO PURCHASE OPENAI FOR 97B+. (*Seriously*)
What followed was a snarky declination by Altman w an offer to purchase X “if you want me to” for 9.7B.
Musk replied.
Altman this morning went for the personal jugular on the tv news saying in essence he felt sorry for Elon because he was an “unhappy person.”
What one of us has not heard a family member say this about a family member at a family gathering.
[And yes this morning Elon changed his account name to “Harry Bolz,” ever the b imp.]
SO IN THE CASE I FIGURED STUFF IN THE BACKGROUND OF THEIR SQUABBLE MAY BE “GOING DOWN”
Keep in mind, in the case ELON is actual trying to scuttle OAI’s move from being a not-for-profit to being a for profit. It is a GREAT AND LARGE vulnerability legally for Altman and OAI as nothing of this sort has ever happened in the history of not-for-profits.
A 150b (!) not for profit converting into a FOR PROFIT.
[Those even w a cursory experience in the non profit world know that ONE THING you really cannot do (or you get in trouble) is the treat NONPROFIT (ie PUBLICLY-COMMITTED) assets in a private for profit way. It’s literally the “third rail” of non-profit danger.
And here is OAI with the biggests of funds trying to do the whole thing (although in the news this morning Altman said “maybe” “maybe a piece” and not a piece.)
I can tell you that in order to pull it off these assets must be characterized (all of them), valued, and possibly probably transferred to a for-profit entity.
And in the hypothetical, from my experience though, the entity wishing to do this would be wanting to have a basis value AS LOW AS POSSIBLE as there are tax implications, prior tax and value, and present and future tax implications (private side) on the transfer of the asset.
I heard rumor it was around 30B that OAI had been floating as their value.
SO HERE COMES OPPONENT ELON MUSK (WITH THE MIC OF A PUBLIC CASE IN FEDERAL COURT, AND HIS OWN MIC IN HIS SOCIAL MEDIA PLATFORM X)
POPPING A BALOON - INTRODUCING A WHOPPER - BEING THE LEGAL CASE EQUIVALENT OF THE JOKER! (IN COURT AND OUT) HEAD GAMES FOR REAL MONEY GAMES. AND WE KNOW IT IS VERY VERY PERSONAL ALSO, AND HEATING UP.
Just the ofer alone, a bona fide third party offer for nearly 100B seriously complicates restructure plans for Sam Altman due to the valuation issue and also his dealing with his board who might look kindly on the number and speak to him about it.
Nothing animates a litigation like hurt feelings and emotion! Ask any DIVORCEE!
One thing is for sure, something went down in the Feb 4, 2025 hearing in which a preliminary injuction was sought by OAI (to get Elon to stop talking?) matter is under submission with the Judge and all parties have ordered transcripts from whatever went on in that hearing….
PS - If we get Greenland this could be Elon’s Musk…