OpenAI Board Rejects Elon Musk’s $97 Billion Takeover Bid
OpenAI’s board has officially rejected a $97.4 billion acquisition offer led by Elon Musk and a group of investors, reaffirming that the artificial intelligence company is not for sale.
In a statement shared on X (formerly Twitter) on Friday, OpenAI Board Chair Bret Taylor said, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.”
The rejection marks another chapter in the ongoing tensions between Musk and OpenAI over the company’s evolving business structure. Originally founded as a nonprofit research lab in 2015 by Musk, CEO Sam Altman, and others, OpenAI has since incorporated a for-profit arm to attract investment and accelerate its AI development. Musk has strongly opposed this shift, arguing that it undermines OpenAI’s original mission of prioritizing public benefit over financial gain.
Earlier this week, Musk and his investor group proposed acquiring OpenAI to turn it into an “open-source, safety-focused force” in artificial intelligence. If accepted, the deal would have significantly altered the AI landscape, placing OpenAI under Musk’s control – alongside his own AI venture, xAI. However, OpenAI swiftly dismissed the bid, with Altman posting on X: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Taylor, who previously chaired Twitter’s board when Musk took over the platform in 2022, reiterated OpenAI’s commitment to its mission. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI (Artificial General Intelligence) benefits all of humanity,” he stated.
Musk’s Legal Battles with OpenAI
The Tesla and SpaceX CEO has repeatedly clashed with OpenAI over its direction. In mid-2024, Musk filed a lawsuit accusing OpenAI of abandoning its nonprofit roots to “maximize profits” while racing to develop AGI. He also alleged that the company engaged in racketeering. However, Musk withdrew the lawsuit after OpenAI released emails from its early days, in which he appeared to acknowledge the need for significant funding to support AI research – contradicting his legal claims.
Following the board’s rejection, Marc Toberoff, a lawyer representing Musk’s investor group, responded by questioning the decision. “They’re just selling it to themselves at a fraction of what Musk has offered. Will someone please explain how that benefits ‘all of humanity?’” he said.
Despite their rocky history, Altman appears unbothered by Musk’s latest moves. When asked about him at the AI Summit in Paris, Altman simply said, “I wish he would just compete by building a better product.”
