OpenAI board unanimously rejects Elon Musk's $97.4b proposal
On Friday, OpenAI announced that its board of directors has unanimously rejected a $97.4 billion takeover bid made by Elon Musk. According to Bret Taylor, the chair of OpenAI's board, "OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition."
Legal Rejection
William Savitt, OpenAI's attorney, also confirmed the rejection in a letter to Musk's attorney, stating that the proposal "is not in the best interests of OAI’s mission and is rejected." Musk, who was an early investor in OpenAI, had initiated legal action against the company nearly a year ago, citing breach of contract.
Commercial Success
Despite OpenAI's efforts to capitalize on the commercial success of generative AI, the company is a subsidiary of a nonprofit organization that is committed to a mission of developing AI for the benefit of humanity. Musk, who was instrumental in shaping this mission, has been at odds with OpenAI's recent for-profit endeavors.
Recently, Musk, along with his AI startup xAI and a group of investment firms, made a bid to acquire the nonprofit that controls OpenAI. However, OpenAI's board remains steadfast in its decision to reject the proposal, citing new conditions outlined in Musk's court filing.
Legal Disputes
Musk's lawsuit against OpenAI alleges that the company is not honoring the terms of his initial contributions. The legal battle has escalated over time, with Musk adding new claims and defendants, including Microsoft, OpenAI's business partner. The court is currently reviewing Musk's requests, although there has been skepticism expressed about some of his claims.
