OpenAI Rejects Elon Musk’s $97.4 Billion Offer, Reinforcing Its Non-Sale Stance
OpenAI has firmly rejected an unsolicited $97.4 billion acquisition bid from a consortium led by billionaire entrepreneur Elon Musk, reinforcing its stance that the artificial intelligence startup is not for sale. The bid, which aimed to take control of the company behind ChatGPT, was swiftly dismissed by OpenAI’s board, which stated that any future proposal of this nature would be disingenuous.
The move marks the latest chapter in the ongoing rivalry between Musk and OpenAI’s leadership, particularly its CEO, Sam Altman. Musk, who co-founded OpenAI with Altman, later distanced himself from the company after it transitioned into a for-profit model. His latest attempt to acquire the firm aligns with his broader criticisms of OpenAI’s evolving business structure, which he claims diverges from its original nonprofit mission to develop artificial general intelligence (AGI) for the benefit of humanity.
OpenAI’s Firm Response to Musk’s Bid
Following the board’s decision, OpenAI released a statement on X (formerly Twitter), quoting OpenAI Chairman Bret Taylor. The statement reaffirmed the company’s commitment to remaining independent and prioritizing its nonprofit mission.
“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 benefits all of humanity,” the statement read.
Musk’s legal team quickly responded to the rejection. Marc Toberoff, Musk’s attorney, accused OpenAI of prioritizing the financial interests of its board members rather than remaining true to its charitable roots. He asserted that the company’s leadership is steering it toward commercialization at the expense of its original philanthropic mission.
OpenAI’s Structural Reorganization and Musk’s Opposition
In late December 2024, OpenAI revealed plans to restructure its organization. The proposed changes included the creation of a public benefit corporation, a move designed to facilitate the raising of significant capital beyond what the nonprofit model allows. The restructuring aims to remove the limitations currently imposed by OpenAI’s nonprofit parent organization, making it easier to secure investment and maintain its position at the forefront of artificial intelligence research and development.
Musk has consistently opposed OpenAI’s for-profit direction, claiming it contradicts the principles upon which the company was founded. His recent acquisition bid was seen as an effort to reclaim influence over OpenAI’s trajectory and prevent it from becoming overly commercialized. However, the OpenAI board has shown no interest in engaging with Musk’s offer, maintaining that its focus remains on advancing AI in a manner that serves the broader public interest rather than corporate gains.
Public Exchanges and Legal Disputes Intensify
Tensions between Altman and Musk have been brewing for years, with their disagreements becoming increasingly public. Following the board’s rejection of the acquisition bid, Altman responded on X with a succinct, “No, thank you,” dismissing Musk’s proposal outright. Musk, in turn, responded with a single-word retort: “Swindler.”
On Tuesday, Altman reiterated to news outlet Axios that OpenAI was “not for sale,” reaffirming the board’s position. Musk’s legal representatives then issued a court filing on Wednesday, stating that the consortium, which includes Musk’s AI startup xAI, would withdraw its bid for OpenAI’s nonprofit arm if the company abandoned its transition into a for-profit entity.
However, OpenAI’s board dismissed Musk’s latest legal maneuvers. In a letter addressed to Musk’s legal team, OpenAI’s attorney, William Savitt, challenged the sincerity of the acquisition attempt.
“Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients’ much-publicized ‘bid’ is in fact not a bid at all,” Savitt wrote.
Musk’s Supporters and OpenAI’s Backing from Major Investors
Musk’s acquisition bid was backed by a powerful consortium of investors, including Valor Equity Partners, Baron Capital, and Hollywood talent agent Ari Emanuel. However, despite the financial backing from these high-profile figures, OpenAI remains resolute in its stance against selling the company.
This latest episode adds to the long-standing feud between Musk and OpenAI, which has been fraught with legal disputes and ideological clashes. In August last year, Musk filed a lawsuit against Altman, OpenAI, and its largest financial backer, Microsoft, accusing them of breaching contractual agreements. The lawsuit argued that OpenAI’s shift toward profit-seeking motives contradicts its initial pledge to develop AGI for the collective benefit of humanity rather than private financial gain.
OpenAI’s Path Forward Amidst Legal and Business Challenges
As OpenAI continues to attract substantial investment and forge strategic partnerships, the company remains focused on its mission of leading AI research and innovation. The board’s rejection of Musk’s bid signals that OpenAI intends to maintain its independence, even as it evolves its corporate structure to accommodate growing financial demands.
Musk’s repeated efforts to challenge OpenAI’s direction reflect broader concerns within the AI industry about the balance between innovation, commercialization, and ethical responsibilities. While OpenAI’s restructuring aims to secure the financial resources necessary for AI development, critics—including Musk—argue that such shifts may compromise the original intent of the company.
As legal battles and power struggles continue, OpenAI’s rejection of Musk’s bid underscores its determination to remain autonomous. Whether this decision will put an end to Musk’s attempts to influence OpenAI’s future remains uncertain. However, for now, the company has made it clear that it is not for sale and that its mission to ensure AI benefits all of humanity remains unchanged.
