OpenAI, the artificial intelligence giant behind ChatGPT, has decisively rejected an unsolicited $97.4 billion bid led by Elon Musk. CEO Sam Altman dismissed the offer, calling it “another one of his tactics to try to mess with us.” The rejection underscores OpenAI’s commitment to maintaining control over its mission-driven AI development while highlighting ongoing tensions between Altman and Musk.
Despite Musk’s public announcement of his bid, OpenAI’s board has yet to receive a formal proposal. According to sources familiar with the matter, Musk’s attorney, Marc Toberoff, claimed the offer was sent via email to OpenAI’s external legal counsel at Wachtell, Lipton, Rosen & Katz. However, OpenAI’s leadership has expressed skepticism, with Altman stating that the nonprofit controlling OpenAI is simply not for sale.
This lack of direct board communication has fueled speculation that Musk’s bid was less about genuine acquisition and more about disruption. OpenAI has been in the process of securing $40 billion in funding while transitioning from a nonprofit to a capped-profit entity—a move Musk has publicly criticized.
The conflict between Musk and OpenAI dates back to 2015 when Musk co-founded the company with Altman. However, he departed after a disagreement over its strategic direction. Since then, Musk has remained a vocal critic of OpenAI’s shift towards commercialization, even launching his own AI venture, xAI, in 2023. His bid to purchase OpenAI, therefore, appears as an attempt to either wrest back control or throw a wrench into OpenAI’s evolution.
Musk has also been outspoken about OpenAI’s partnership with Microsoft, questioning whether the nonprofit’s mission aligns with corporate interests. However, OpenAI has defended its shift to a for-profit model, arguing that massive investments are necessary to continue developing cutting-edge AI models that can compete on a global scale.
OpenAI’s transition into a for-profit entity has been scrutinized by regulators and industry experts alike. Delaware Attorney General Kathy Jennings is currently reviewing whether OpenAI’s restructuring adheres to its original nonprofit charter, ensuring public benefit rather than private gains.
Legal experts suggest that Musk’s bid—despite being rejected—could inadvertently influence OpenAI’s valuation. Robert Weissman, co-president of Public Citizen, noted that Musk’s offer might set a benchmark for regulators assessing OpenAI’s nonprofit-to-for-profit conversion, ensuring that any asset transfers occur at fair market value.
As OpenAI fends off Musk’s takeover attempt, it remains focused on raising the necessary capital to push the boundaries of AI innovation. The company’s leadership is betting on its ability to balance investor interests with its original mission, all while navigating an increasingly competitive and regulatory AI landscape.
With Musk continuing his legal and financial maneuvers against OpenAI, this saga is far from over. Whether his bid was a genuine acquisition attempt or a strategic disruption, it has undoubtedly intensified the broader debate over AI ownership, ethics, and control in an industry shaping the future of technology.
OpenAI’s rejection of Musk’s bid underscores its commitment to AI innovation on its own terms. While Musk continues to challenge OpenAI’s evolution, the AI giant remains steadfast in its mission. The implications of this battle will likely shape the future of AI governance, competition, and investment. For now, OpenAI has made its stance clear: it will not be swayed by Musk’s financial maneuvers, no matter how grand they may appear.
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