15/02/25 | 11:11 am | Musk | open ai | Sam Altman

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OpenAI rejects Elon Musk’s $97.4 billion offer

OpenAI, led by Sam Altman, has rejected billionaire Elon Musk’s $97.4 billion offer to acquire the nonprofit company.  

In a statement on the social media platform X, OpenAI Board Chair Bret Taylor described Musk’s bid as “an attempt to disrupt his competition.”  

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor posted.  

He further stated that any potential reorganization of OpenAI would only strengthen its nonprofit mission to ensure artificial general intelligence (AGI) benefits all of humanity.  

According to reports, OpenAI has also sent a letter to Musk’s lawyer, stating that the bid was not in the best interest of its mission.  

Earlier this week, Musk’s AI company, xAI, along with a group of investors, made an unsolicited offer to acquire OpenAI’s nonprofit arm for $97.4 billion. However, Altman and the company’s board of directors dismissed the proposal.  

Andy Nussbaum, legal counsel for OpenAI’s board, stated that Musk’s bid “doesn’t establish a value for OpenAI’s nonprofit” and reiterated that the nonprofit is “not for sale.”  

Musk, a co-founder of OpenAI, had previously filed a lawsuit against the company and Altman, alleging anti-competitive behavior, fraud, and other violations.  

In October last year, Musk sought a preliminary injunction against OpenAI, accusing its leadership—including CEO Sam Altman, President Greg Brockman, and major investors such as Microsoft—of engaging in illicit activities. The motion also targeted LinkedIn co-founder and former OpenAI board member Reid Hoffman, as well as former OpenAI board member and Microsoft VP Dee Templeton.  

Musk’s allegations included claims that OpenAI had shifted to a for-profit governance structure and had transferred material assets, including intellectual property, away from its nonprofit entity.  

In response, OpenAI dismissed Musk’s lawsuit as baseless, stating, “Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit.” The company had previously described the lawsuit as “blusterous” and unfounded.  

IANS

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