OpenAI’s Board Unanimously Turns Down Elon Musk's $97.4 Billion Offer
OpenAI's board has unanimously decided to turn down Elon Musk's proposal, which amounted to $97.4 billion.
TroibNews 
OpenAI announced on Friday that it has rejected a $97.4 billion offer from a consortium led by billionaire Elon Musk, affirming that the company is not for sale and characterizing any future bid as disingenuous.
This unsolicited bid marks Musk's latest effort to impede the startup, which he co-founded with OpenAI CEO Sam Altman before leaving, as it transitions towards securing additional funding and maintaining its competitive edge in the artificial intelligence sector.
"OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition," the organization stated on X, with comments from OpenAI Chairman Bret Taylor representing the board. "Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity."
AGI, or artificial general intelligence, refers to advanced AI capable of thinking, learning, and adapting like humans—an aspiration for many researchers in the field.
In response, Musk's attorney Marc Toberoff claimed that OpenAI is essentially offering control of its for-profit arm for sale, stating that this approach will "enrich its certain board members rather than the charity."
In December, OpenAI announced plans to restructure, revealing its intention to form a public benefit corporation that would enable it to "raise more capital than we'd imagined," while also lifting the constraints imposed by its nonprofit parent.
Earlier this week, Altman dismissed the consortium's bid with a simple "no thank you" on X, leading Musk to call him a "swindler." On Tuesday, Altman reiterated to Axios that OpenAI is not for sale.
Musk's legal team filed a document on Wednesday saying that the consortium—comprising Musk's own AI venture xAI—would retract its offer for OpenAI's nonprofit division if the organization abandons plans to transition into a for-profit entity.
"Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients' much publicized 'bid' is in fact not a bid at all," the OpenAI board conveyed in a letter signed by William Savitt, a lawyer representing the company, and sent to Toberoff on Friday.
The consortium also includes other investors such as Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel.
Altman and Musk have had a contentious relationship for several years.
After Musk left in 2019, OpenAI established a for-profit arm that has attracted billions in funding, prompting Musk to accuse the startup of deviating from its original mission by prioritizing profit over public benefit.
In August of the previous year, Musk filed a lawsuit against Altman, OpenAI, and its major backer, Microsoft, alleging breach of contract.
In November, Musk sought a preliminary injunction from a federal court to prevent OpenAI from transitioning to a for-profit structure.
Camille Lefevre for TROIB News
This unsolicited bid marks Musk's latest effort to impede the startup, which he co-founded with OpenAI CEO Sam Altman before leaving, as it transitions towards securing additional funding and maintaining its competitive edge in the artificial intelligence sector.
"OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition," the organization stated on X, with comments from OpenAI Chairman Bret Taylor representing the board. "Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity."
AGI, or artificial general intelligence, refers to advanced AI capable of thinking, learning, and adapting like humans—an aspiration for many researchers in the field.
In response, Musk's attorney Marc Toberoff claimed that OpenAI is essentially offering control of its for-profit arm for sale, stating that this approach will "enrich its certain board members rather than the charity."
In December, OpenAI announced plans to restructure, revealing its intention to form a public benefit corporation that would enable it to "raise more capital than we'd imagined," while also lifting the constraints imposed by its nonprofit parent.
Earlier this week, Altman dismissed the consortium's bid with a simple "no thank you" on X, leading Musk to call him a "swindler." On Tuesday, Altman reiterated to Axios that OpenAI is not for sale.
Musk's legal team filed a document on Wednesday saying that the consortium—comprising Musk's own AI venture xAI—would retract its offer for OpenAI's nonprofit division if the organization abandons plans to transition into a for-profit entity.
"Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients' much publicized 'bid' is in fact not a bid at all," the OpenAI board conveyed in a letter signed by William Savitt, a lawyer representing the company, and sent to Toberoff on Friday.
The consortium also includes other investors such as Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel.
Altman and Musk have had a contentious relationship for several years.
After Musk left in 2019, OpenAI established a for-profit arm that has attracted billions in funding, prompting Musk to accuse the startup of deviating from its original mission by prioritizing profit over public benefit.
In August of the previous year, Musk filed a lawsuit against Altman, OpenAI, and its major backer, Microsoft, alleging breach of contract.
In November, Musk sought a preliminary injunction from a federal court to prevent OpenAI from transitioning to a for-profit structure.
Camille Lefevre for TROIB News
