The board of OpenAI, the company behind ChatGPT, has rejected a $97.4 billion takeover bid from Elon Musk and his consortium, stating that the company is not for sale. The decision marks another chapter in the ongoing battle between Musk and OpenAI, the company he co-founded before leaving in 2019.
In a public statement, OpenAI Chairman Bret Taylor dismissed the offer as an attempt to disrupt the competition, adding that any reorganization of OpenAI will only strengthen its nonprofit mission to ensure artificial general intelligence (AGI) benefits all of humanity.
Musk’s Legal Team Responds
Musk’s lawyer, Marc Toberoff, quickly fired back, accusing OpenAI of prioritizing board members’ financial interests over its original mission.
“OpenAI is putting control of the for-profit enterprise up for sale, which will enrich certain board members rather than the charity,” Toberoff stated.
The tension between Musk and OpenAI has been brewing since 2019, when the company transitioned from a nonprofit to a for-profit model, attracting billions in investments, including a massive stake from Microsoft.
Key Issues in the Musk-OpenAI Feud
•Musk has repeatedly accused OpenAI of betraying its nonprofit roots by prioritizing profits over the original goal of developing AGI for public benefit.
•In August 2023, Musk sued OpenAI, Sam Altman, and Microsoft, alleging breach of contract and unfairly monetizing AI research.
•In December 2023, OpenAI announced a corporate restructuring, proposing a public benefit corporation model to ease capital raising—a move that further angered Musk.
Musk’s Failed Takeover Attempt
Musk’s consortium, which includes his AI startup xAI, Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel, made an offer to acquire OpenAI’s nonprofit arm. However, the bid came with a condition—that OpenAI abandon its for-profit ambitions.
The OpenAI board dismissed the offer outright, labeling it “disingenuous” and reiterating that the company is not for sale.
What This Means for the AI Industry
•OpenAI’s rejection of Musk’s bid cements its commitment to independence, ensuring it remains a dominant force in the AI space without outside interference.
•The battle between Musk and OpenAI highlights broader concerns over AI governance, commercialization, and ethical responsibility.
•Despite the setback, Musk’s AI startup xAI is pushing forward, recently announcing the launch of Grok 3, which Musk claims is the “smartest AI on Earth.”
The AI war is far from over, and with trillions of dollars at stake, the coming months will be crucial in determining who will lead the next wave of AI innovation.
