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OpenAI has turned down a $97.4 billion acquisition offer from a consortium led by Elon Musk, stating it is not for sale. The bid, backed by Musk's AI startup xAI, aimed to prevent OpenAI from transitioning into a for-profit entity. OpenAI’s board, chaired by Bret Taylor, announced the unanimous rejection on X, emphasizing their commitment to ensuring artificial general intelligence (AGI) benefits humanity.
The rejected bid marks another chapter in the ongoing feud between Musk and OpenAI CEO Sam Altman. After Musk left OpenAI in 2019, the company established a for-profit arm, securing billions in funding. Musk, alleging a breach of OpenAI’s original mission, filed a lawsuit against Altman, OpenAI, and Microsoft in 2024, claiming the shift prioritizes profit over public good.
The consortium, which includes Valor Equity Partners, Baron Capital, and Hollywood power broker Ari Emanuel, offered to withdraw their bid if OpenAI abandoned its for-profit plans. However, OpenAI accused Musk of adding new conditions to the offer, undermining its legitimacy. In a letter from OpenAI’s lawyer William Savitt, the company declared Musk's bid disingenuous, highlighting his recent court filing as evidence.
The public clash continued on social media, with Altman dismissing the bid as a "no thank you" on X, prompting Musk to retort with "swindler." Despite mounting legal pressure, OpenAI remains firm on its nonprofit mission, stating that any future offers with similar terms would be rejected.
This high-profile dispute reflects broader tensions within the AI industry as major players navigate ethical concerns and profit motives. As OpenAI forges ahead with its mission, the conflict with Musk underscores the complexities of balancing innovation, competition, and societal impact.
