OpenAI Rejects Elon Musk’s $97.4B Bid, Calls It Disruptive

OpenAI’s board of directors has unanimously rejected Elon Musk’s $97.4 billion offer to buy its nonprofit governing body, stating that the bid was not in the best interests of its mission.

"OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest proposal to disrupt his competition," said Bret Taylor, OpenAI’s board chair, in a statement posted on X.

Why OpenAI Rejected Musk’s Offer

In a separate statement, Andy Nussbaum, OpenAI’s board counsel, explained OpenAI’s reasoning, stating that:

• Musk’s bid does not assign value to OpenAI’s nonprofit arm

• The nonprofit is not for sale

• Any restructuring will focus on strengthening OpenAI’s commitment to ensuring AGI benefits all of humanity

According to The New York Times, OpenAI also sent a letter to Musk’s legal team reiterating its position.

The Bigger Picture: Musk vs. OpenAI

Musk, a co-founder of OpenAI, has been involved in ongoing legal disputes with the company. In 2023, he filed a lawsuit against OpenAI and CEO Sam Altman, alleging:

• Anticompetitive behavior

• Fraud and breaches of OpenAI’s nonprofit mission

• Unlawful transition from a nonprofit to a for-profit entity

Musk argues that OpenAI's shift from a nonprofit to a “capped-profit” structure in 2019, and its ongoing transition into a public benefit corporation, are inconsistent with its original founding principles.

Musk’s Legal Position

In a court filing on Wednesday, Musk’s legal team stated that he would withdraw his bid if OpenAI halted its for-profit transition and maintained its charitable mission. OpenAI’s attorneys responded by describing Musk’s actions as an attempt to take control of a competing AI company.

The situation has led to public exchanges between Musk’s allies and OpenAI leadership:

• Ari Emanuel, one of Musk’s supporters, criticized OpenAI’s leadership in a podcast interview, arguing that the company had shifted away from its original mission.

• Altman, in response, suggested Musk’s bid was intended to slow OpenAI’s progress.

What This Means

The rejection of Musk’s bid reinforces OpenAI’s commitment to remaining independent, even as it undergoes structural changes.

With Musk’s lawsuit still ongoing and OpenAI’s corporate restructuring in progress, the power struggle over AGI governance, nonprofit accountability, and corporate control is far from settled. The coming months will likely shape the next phase of AI industry leadership, as OpenAI, Musk, and other key players navigate the evolving landscape and fighting for control.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.