.jpg)
OPENAI has firmly rejected a US$97.4 billion bid from a consortium led by billionaire Elon Musk, stating that the company is not for sale and any future offers would be insincere.
The rejection comes amid Musk’s ongoing efforts to prevent the startup, which he co-founded with CEO Sam Altman before parting ways, from shifting to a for-profit structure as it seeks to secure more funding and maintain its edge in the competitive AI race, Reuters reported today.
In a statement posted on X (formerly Twitter), OpenAI's board, led by Chairman Bret Taylor, declared: "OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity."
Musk's lawyer, Marc Toberoff, did not respond to requests for comment. The move marks Musk’s latest in a series of actions aimed at preventing OpenAI from transitioning to a for-profit model, which has been a point of contention since he left the company in 2019.
Earlier this week, Sam Altman, CEO of OpenAI, confirmed the company's stance in an interview with Axios, reiterating that OpenAI is not for sale. Altman had previously dismissed Musk's offer with a simple "no thank you" on X, which prompted Musk to call him a "swindler" in a tweet.
The bid, which was made by a consortium that includes Musk's AI startup xAI, would have seen the group withdraw their offer if OpenAI abandoned its plans to become a for-profit entity, according to a court filing from Musk's legal team.
In response to the legal developments, the OpenAI board stated in a letter sent Friday to Musk’s lawyer, William Savitt, that the bid was no longer considered a legitimate offer. "As a result of that filing, it is now apparent that your clients' much-publicized 'bid' is in fact not a bid at all," the letter said.
Musk’s group of investors includes Valor Equity Partners, Baron Capital, and Hollywood mogul Ari Emanuel.
The rift between Musk and Altman stretches back several years. Following Musk’s departure from OpenAI in 2019, the company introduced a for-profit arm that has since secured billions of dollars in investment.
Musk has criticised this move, claiming that OpenAI’s shift toward profit undermines its original mission to serve the public good.
In a further escalation, Musk filed a lawsuit in August 2023, accusing Altman, OpenAI, and its major backer Microsoft of breaching their contract.
In November, Musk sought a preliminary injunction from a U.S. district judge to block OpenAI from transitioning to a for-profit structure, a move that continues to play out in the courts.
Despite the legal battles and public tension, OpenAI remains steadfast in its commitment to its nonprofit mission, reinforcing that any changes to its structure will focus on advancing its goal of ensuring artificial general intelligence (AGI) benefits all of humanity. - February 15, 2025
