Elon Musk has warned he will withdraw his $97.4 billion offer for OpenAI’s non-profit division if the company chooses to remain a non-profit instead of transitioning into a for-profit entity, according to a legal filing on Wednesday.

Musk’s lawyers stated that if OpenAI’s board agrees to uphold its original charitable mission and halts its shift toward commercialization, he will retract his bid. Otherwise, the non-profit should be compensated based on its market value, as per the filing. The Tesla and X CEO’s proposal was framed as a move to support OpenAI’s charitable mission.

Neither OpenAI nor Musk responded to requests for comment outside regular business hours. OpenAI was co-founded by Musk and Sam Altman in 2015 as a non-profit. However, Musk later exited due to disagreements with Altman over the company’s direction. Altman, now CEO, introduced a for-profit arm to attract investors like Microsoft. He is currently working on a restructuring plan that would turn the core business into a for-profit company, with the original non-profit retaining a minority stake. Musk has sued to block this transition.

Earlier this week, Musk and a group of investors made an offer to acquire the non-profit in an effort to stop the shift. However, OpenAI CEO Altman told Reuters on Tuesday that the non-profit is not for sale. OpenAI has also pointed out that Musk’s bid contradicts his own lawsuit, which argues that the company’s assets should not be used for private gain.

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