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OpenAI’s board has yet to receive a formal bid from Elon Musk’s consortium, despite his lawyer claiming the offer was sent to OpenAI’s outside counsel. Musk proposed a $97.4 billion buyout for OpenAI’s nonprofit entity, aiming to block its transition into a for-profit model.
Musk’s attorney, Marc Toberoff, stated the bid was sent via email as a four-page Letter of Intent signed by Musk and investors. However, OpenAI CEO Sam Altman dismissed the offer, calling it “ridiculous” and a tactic to disrupt the company. Altman confirmed OpenAI is not for sale and that the board intends to reject the bid in favor of its mission.
Musk co-founded OpenAI in 2015 but left due to conflicts over the company’s direction. In 2023, he launched a rival AI startup, xAI. OpenAI is currently raising $40 billion to fund its AI advancements, requiring a transition to a for-profit model. This shift has drawn regulatory scrutiny, with Delaware’s Attorney General reviewing whether OpenAI’s nonprofit control is being properly valued.
Legal experts suggest Musk’s bid complicates OpenAI’s valuation, as regulators must ensure any asset sale aligns with fair market value. The ongoing battle between Musk and OpenAI underscores broader tensions in the AI sector, where financial interests and technological development are increasingly at odds.
