Elon Musk's$97.4 billion bid to acquire OpenAI's assets has sparked controversy, with OpenAI accusing him of contradicting his own legal claims.

Musk's lawsuit, filed in August, argues that OpenAI's assets should remain in a charitable trust and not be transferred for private gain. OpenAI has called his offer 'an improper bid to undermine a competitor'.

The dispute comes as OpenAI seeks to transition into a for-profit organisation to secure funds for advanced AI development. Musk, a co-founder of OpenAI who left before ChatGPT's rise in 2022, has launched his own AI startup, xAI, in 2023.

OpenAI's letter to a federal court highlights the clash between Musk's stated opposition to privatising its assets and his attempt to acquire them with private investors. The AI company argues that Musk's bid undermines his legal position and the nonprofit's mission.

Representatives for Musk have yet to comment. OpenAI continues to defend its transition plan, emphasising the need for substantial investment to remain competitive in the fast-evolving AI landscape.