OpenAI's board unanimously rejects Elon Musk's buyout offer

OpenAI has rejected Elon Musk’s offer to buy the company for $97.4 billion stating that it is not for sale.

The artificial intelligence company’s Board chairman, Bret Taylor stated that the board has unanimously rejected Musk’s offer. He noted that Musk’s offer is his latest attempt to disrupt his competition.

OpenAI Stance

“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 (artificial general intelligence) benefits all of humanity,” the chairman stated on Friday.

Musk's Move

Note that Musk filed court documents on Wednesday saying that he would withdraw the offer to buy OpenAI if its board returns the artificial intelligence pioneer to a non-profit “charity” model. OpenAI currently operates a hybrid structure, as a non-profit with a money-making subsidiary.

Company History

The change to a for-profit model — one that Altman considers crucial for the company’s development — had exacerbated ongoing tensions with Musk. Musk and Altman were among the 11-person team that founded OpenAI in 2015, with the former providing initial funding of $45 million. Three years later, Musk departed the company, with OpenAI citing “a potential future conflict for Elon… as Tesla continues to become more focused on AI.”

Musk established his own artificial intelligence company called xAI early in 2023 after OpenAI ignited global fervor over the technology.