Elon Musk has issued a warning that he will continue his $97.4 billion offer for OpenAI's nonprofit arm until the ChatGPT maker stops its transition to a for-profit entity, as Sam Altman previously described the action as "to slow a competitor." This development was revealed in a court filing submitted on Wednesday to the U.S. District Court for the Northern District of California.

"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 stated. "Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets."

On Monday, Musk, along with his artificial intelligence company xAI and a consortium of investors, launched a bid to acquire OpenAI's nonprofit arm for $97.4 billion. Musk accused the firm and its CEO, Sam Altman, of abandoning its original mission to develop AI for good and pursuing profits instead.

Musk reiterated his concerns about OpenAI's conversion during the World Governments Summit in Dubai via video link. "I think the evidence was there in that OpenAI has gotten this far while having at least a sort of dual profit, nonprofit role. What they're trying to do now is completely delete the nonprofit. And that seems really going too far," he said.

"I provided all of the funding for OpenAI for the first almost $50 million for nothing, as a nonprofit, and it was meant to be open source. This is analogous to finding a nonprofit to preserve the Amazon rainforest, but then they turn into a lumber company and chop down the trees and sell them for wood." Musk added, and suggested that OpenAI should now change its name to "maximum profit AI" or "closed for voracious profit."

OpenAI's board has not yet received a formal bid from Musk's group, according to a source familiar with the matter, adding to the confusion over the unsolicited attempt. Altman has called the bid "ridiculous" and stated that the nonprofit controlling the company is not for sale.

Altman, the current CEO of OpenAI, is working on a plan to restructure the core business into a for-profit firm that will no longer be controlled by its nonprofit board. The nonprofit will continue to exist and own a stake in the for-profit company.

Musk's bid could complicate OpenAI's efforts to transition to a for-profit company by setting a high floor value for the nonprofit that controls the startup. Questions have also arisen about whether OpenAI would allocate its assets to the nonprofit arm fairly since Reuters first reported its plans for the structural change in September.

SoftBank Group is reportedly in talks to lead a funding round of up to $40 billion in OpenAI at a valuation of $300 billion, including the new funds. This means the nonprofit could own a stake with significant value in the company.