Emergency pod: Elon tries to crash OpenAI’s party (with Rose Chan Loui)

On Monday, February 10, Elon Musk made the OpenAI nonprofit foundation an offer they want to refuse, but might have trouble doing so: $97.4 billion for its stake in the for-profit company, plus the freedom to stick with its current charitable mission.
For a normal company takeover bid, this would already be spicy. But OpenAI’s unique structure — a nonprofit foundation controlling a for-profit corporation — turns the gambit into an audacious attack on the plan OpenAI announced in December to free itself from nonprofit oversight.
As today’s guest Rose Chan Loui — founding executive director of UCLA Law’s Lowell Milken Center for Philanthropy and Nonprofits — explains, OpenAI’s nonprofit board now faces a challenging choice.
The nonprofit has a legal duty to pursue its charitable mission of ensuring that AI benefits all of humanity to the best of its ability. And if Musk’s bid would better accomplish that mission than the for-profit’s proposal — that the nonprofit give up control of the company and change its charitable purpose to the vague and barely related “pursue charitable initiatives in sectors such as health care, education, and science” — then it’s not clear the California or Delaware Attorneys General will, or should, approve the deal.
OpenAI CEO Sam Altman quickly tweeted “no thank you” — but that was probably a legal slipup, as he’s not meant to be involved in such a decision, which has to be made by the nonprofit board ‘at arm’s length’ from the for-profit company Sam himself runs.



















