In a dramatic twist to the ongoing saga between Elon Musk and OpenAI, the billionaire has stated that he will abandon his $97.4 billion offer to acquire the nonprofit organization behind OpenAI—if the company drops its plans to convert into a for-profit entity.

Musk’s legal team filed a statement with a California court on Wednesday, outlining the conditions under which the tech mogul would withdraw his bid. “If OpenAI, Inc.’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid,” the filing read. However, they added, “Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets.”

The unsolicited offer, made earlier this week by Musk alongside a consortium of investors—including his own AI startup, xAI—marks the latest escalation in a years-long feud over the direction of the artificial intelligence company. OpenAI, originally founded as a nonprofit in 2015 with the mission of developing advanced AI for public benefit, announced last year its intention to formally transition into a for-profit structure.

Musk and his allies argue that acquiring OpenAI would allow them to restore its original purpose as a nonprofit research lab dedicated to safe and ethical AI development. However, OpenAI CEO Sam Altman swiftly rejected the proposal, dismissing it as unrealistic. In a social media post, Altman reiterated that the company is not for sale. He further addressed the issue during a panel at a Paris summit on AI, where he emphasized OpenAI’s commitment to its current trajectory.

The dispute traces back to OpenAI’s origins, when Musk co-founded the organization alongside Altman and other prominent figures in the tech world. Tensions began to rise after Musk stepped down from OpenAI’s board in 2018, citing potential conflicts of interest with his work at Tesla and SpaceX. Since then, the two visionaries have clashed repeatedly over the startup’s strategic priorities, particularly regarding its shift toward commercialization.

OpenAI’s rapid growth, fueled by the success of its ChatGPT platform, has only intensified scrutiny over its evolving corporate structure. Critics worry that prioritizing profit could undermine the organization’s founding principles, while supporters argue that a for-profit model is necessary to sustain innovation and compete in the global AI race.

For now, Musk’s conditional withdrawal offer appears unlikely to sway OpenAI’s leadership, given Altman’s firm stance against selling the company. As the battle unfolds, it underscores broader debates about the role of ethics, governance, and financial incentives in shaping the future of artificial intelligence—a field both Musk and Altman have played pivotal roles in advancing.

With billions of dollars and the philosophical soul of one of the world’s most influential AI labs at stake, the outcome of this high-stakes standoff remains uncertain.