OpenAI rejects Elon Musk offer - OpenAI ChatGPT board declines $97.4 billion takeover bid
OpenAI's board of directors has unanimously rejected a $97.4 billion takeover bid by tech titan Elon Musk. The decision comes after OpenAI's Sam Altman, who co-founded the AI company with Musk, declined the offer from the Tesla CEO and instead proposed $9.74 billion to acquire Musk's company X.
OpenAI's Stand
A statement from Bret Taylor, chair of OpenAI's board, affirmed the company's stance, stating, "OpenAI is not for sale, and the board has unanimously rejected (Elon) Musk's latest attempt to disrupt his competition. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity."
Feud with Elon Musk
This recent development adds another chapter to the ongoing dispute between OpenAI and Musk, who also owns a competing firm, xAI. The crux of the disagreement revolves around Altman's proposal to transition OpenAI, currently a non-profit organization, into a for-profit entity to facilitate increased funding for AI research.
Conflict of Interest
While Altman advocates for this shift to drive further advancements in AI, Musk advocates for OpenAI to maintain its non-profit status and remain dedicated to advancing AI for the greater good of humanity.
Recent Events
Recently, a Musk-led consortium of investors made a $97 billion offer to purchase OpenAI with the intent of reverting it to an "open-source, safety-focused force." Altman promptly declined the offer, suggesting the acquisition of Twitter for $9.74 billion as an alternative.
Legal Battles
Musk's proposition came on the heels of two lawsuits he filed against OpenAI in the previous year. The first, in July 2024, alleged that the AI firm had deviated from its founding principles. The second lawsuit, in August 2024, sought to halt OpenAI's for-profit transformation, citing breach of contract and antitrust violations.
