OpenAI Says No to Elon Musk’s $97 Billion Offer
According to Reuters, OpenAI, the company behind ChatGPT, has rejected a $97.4 billion bid from billionaire Elon Musk and his group of investors.
The OpenAI board said the company is not for sale and that Musk’s offer was not sincere. They also stated that any future attempts to buy OpenAI would be seen as dishonest.
Musk, who co-founded OpenAI with CEO Sam Altman but left in 2019, has been trying to stop the company from becoming a for-profit business. OpenAI currently operates as a nonprofit but has a for-profit arm that has attracted billions in funding.
Musk claims this shift goes against OpenAI’s original mission to ensure artificial intelligence (AI) benefits all of humanity, not just shareholders.
In a statement on X (formerly Twitter), OpenAI’s board, led by Chairman Bret Taylor, said, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.” They added that any changes to OpenAI’s structure would strengthen its nonprofit mission.
Reuters reports that Musk’s lawyers had offered to withdraw the bid if OpenAI dropped its plans to become a for-profit company.
However, OpenAI’s lawyer, William Savitt, called the offer “not a bid at all” and accused Musk of adding new conditions to the deal.
Musk’s group of investors includes his AI startup, xAI, as well as firms like Valor Equity Partners, Baron Capital, and Hollywood power broker Ari Emanuel. Despite the high-profile bid, OpenAI remains firm in its decision to stay independent.
The tension between Musk and Altman has been growing for years. After Musk left OpenAI in 2019, the company created a for-profit arm to raise more money and stay competitive in the AI race. Musk has accused OpenAI of betraying its mission by prioritizing profits over public good. Last year, he even sued Altman, OpenAI, and its biggest investor, Microsoft, for allegedly breaking their original agreement.
In November, Musk asked a U.S. court to block OpenAI from becoming a for-profit company, but the case is still ongoing. Meanwhile, OpenAI continues to focus on its goal of developing AI that benefits everyone, not just a few.
Reuters highlights that this rejection shows OpenAI’s commitment to its mission, even as it faces pressure from one of its most famous co-founders. While Musk’s offer was eye-catching, OpenAI’s board clarified that the company is not for sale.
Credit : Reuters
https://www.reuters.com/technology/openai-board-rejects-musks-974-billion-offer-2025-02-14