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OpenAI has officially rejected a $97.4 billion acquisition bid led by billionaire Elon Musk, reaffirming that the company is not for sale. The rejection further intensifies the ongoing rivalry between OpenAI CEO Sam Altman and Musk, who co-founded the AI firm but later left.
In a statement posted on X (formerly Twitter), OpenAI announced, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.” The company also reiterated its commitment to ensuring artificial general intelligence (AGI) benefits all of humanity, dismissing Musk’s bid as an attempt to interfere with its operations.
Musk’s Counterargument
Musk’s legal team countered OpenAI’s statement, arguing that the startup is, in fact, positioning itself for sale. “OpenAI is putting control of the for-profit enterprise up for sale, a move that will enrich certain board members rather than serving its nonprofit mission,” said Musk’s attorney, Marc Toberoff.
This rejection follows a series of legal battles between Musk and OpenAI. Musk sued Altman, OpenAI, and its biggest investor, Microsoft, in August 2023, claiming they had deviated from OpenAI’s original nonprofit mission. He later sought an injunction to prevent OpenAI from transitioning into a for-profit entity.
Musk’s bid was backed by a consortium, including his AI startup xAI, along with investors such as Valor Equity Partners, Baron Capital, and Hollywood power broker Ari Emanuel. However, OpenAI’s board dismissed the bid, stating that Musk’s latest legal filing introduced conditions that made it clear his offer was not genuine.
Altman’s Reaction
Altman had previously responded to Musk’s bid with a simple “no thank you” on X, to which Musk replied, calling him a “swindler.” OpenAI remains firm in its stance, maintaining that any future bid by Musk’s consortium lacks credibility.
In December 2023, OpenAI announced plans to restructure as a public benefit corporation to facilitate capital raising while maintaining its nonprofit mission. The organization has emphasized that any reorganization will reinforce its mission rather than serve private interests.
As the AI race heats up, the battle between Musk and OpenAI continues to unfold, with legal disputes and corporate maneuvering shaping the future of the industry. With OpenAI rejecting Musk’s bid outright, the tech world will be watching closely to see what Musk’s next move will be.
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