The board of OpenAI has swiftly rejected a $97.4 billion bid, led by Elon Musk and backed by a consortium of investors, saying the company was not for sale, reaffirming its commitment to its nonprofit mission.
The board, through its chairman Bret Taylor, has emphasized that any restructuring efforts would only serve to strengthen its goal of ensuring artificial general intelligence (AGI) benefits all of humanity.
This development marks yet another clash between Elon Musk and OpenAI, the artificial intelligence startup he co-founded but later parted ways with.
The bid was perceived as part of Elon Musk’s strategy to prevent OpenAI from fully transitioning into a for-profit entity. Elon Musk, a critic of OpenAI’s shift toward commercialization, has accused CEO Sam Altman and the company of deviating from their founding principles. His offer, however, was met with a terse response from Sam Altman, who dismissed it with a simple “no thank you” on X. Elon Musk, in turn, fired back, calling Altman a “swindler.”
The consortium behind the bid included Elon Musk’s AI startup xAI, along with investment firms such as Valor Equity Partners, Baron Capital, and Hollywood power broker Ari Emanuel. Despite the significant backing, OpenAI’s legal team quickly pointed out inconsistencies in the bid.
In a letter to Elon Musk’s attorney, William Savitt, representing OpenAI, stated that the bid was not legitimate, particularly after Elon Musk’s legal team introduced new material conditions to their offer in a court filing. OpenAI took this as evidence that Elon Musk’s proposal was never a serious offer in the first place, but rather an attempt to interfere with the company’s operations.
Elon Musk and Sam Altman have been engaged in a long-running feud, which has only intensified as OpenAI has grown into one of the most influential players in artificial intelligence, Reuters news report said.
Elon Musk, once a key figure in the startup’s early days, left in 2019 due to reported disagreements over its direction. Since then, OpenAI has developed a for-profit subsidiary, securing billions in investments, primarily from Microsoft. This has led Elon Musk to accuse OpenAI of betraying its original mission to develop AI for the benefit of humanity rather than financial gain.
Elon Musk’s frustration culminated in a lawsuit against OpenAI, Altman, and Microsoft in August 2023, alleging that they had breached their founding agreement. In a subsequent legal move, he sought a preliminary injunction in November, attempting to prevent OpenAI from advancing further into its for-profit transition. Despite these efforts, OpenAI has continued to expand and commercialize its AI models, maintaining a strong partnership with Microsoft while fending off Musk’s legal and financial challenges.
The latest rejected bid highlights the ongoing battle between Elon Musk and OpenAI, with no signs of resolution in sight. As OpenAI continues to pursue its mission under Sam Altman’s leadership, Elon Musk’s attempts to challenge its trajectory, whether through lawsuits or acquisition attempts, are likely to persist.
