ChatGPT maker OpenAI’s board of directors has formally rejected an offer from a group of investors led by billionaire Elon Musk to buy the nonprofit that controls the artificial intelligence company for $97.4 billion.
“OpenAI is not for sale, and the board has unanimously rejected Mr Musk’s latest attempt to disrupt his competition,” Bret Taylor, OpenAI’s board chair, said in a statement on behalf of the company’s board of directors. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity.”
Earlier this week, Musk submitted a $97.4 billion bid for OpenAI, and also offered to withdraw the bid if the firm halted a potential transition into a for-profit company.
Musk’s latest move is an effort to block OpenAI, the startup he co-founded with CEO Sam Altman, from becoming a for-profit company as it seeks more funding and aims to stay competitive in the AI race. Musk is suing OpenAI and Altman over what he claims is corporate misconduct, specifically the shift to a for-profit model.
Musk’s legal team stated in a court filing that the consortium led by Musk, which includes his AI startup xAI, would withdraw its bid for OpenAI’s nonprofit arm if it abandons its plans to go for-profit. Other investors in the consortium include Valor Equity Partners, Baron Capital, and Ari Emanuel.
Musk and Altman have been at loggerheads for years. Since Musk’s departure from OpenAI in 2019, the AI company created a for-profit arm, attracting billions in funding, which Musk claims contradicts the organization’s original mission. In August 2024, Musk sued OpenAI, Altman, and major backer Microsoft for breach of contract. He also sought a preliminary injunction in November to prevent OpenAI from transitioning to a for-profit structure.
