OpenAI’s board has unanimously rejected an acquisition offer led by Elon Musk, which valued the artificial intelligence company at $97.4 billion.
In a statement posted on X, formerly Twitter, OpenAI board chairman Bret Taylor confirmed the decision, stating, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.” He added that any restructuring of OpenAI would only strengthen its nonprofit mission to ensure artificial general intelligence (AGI) benefits all of humanity.
Musk, who co-founded OpenAI in 2015 but left in 2018, had filed court documents on Wednesday, stating he would withdraw his buyout offer if OpenAI reverted to a non-profit model. The company currently operates as a hybrid structure, with a for-profit subsidiary supporting its research efforts.
Tensions between Musk and OpenAI CEO Sam Altman have escalated over the company’s shift toward a profit-driven approach, which Altman argues is essential for development. Musk, meanwhile, has criticized the company’s direction, particularly its close ties with Microsoft.
The bid, which valued OpenAI significantly higher than its last known negotiations, appears to be a strategic move to disrupt the company’s fundraising efforts. Chris Lehane, OpenAI’s Chief Global Affairs Officer, dismissed the offer as coming from a competitor “who has struggled to keep up with the technology and compete with us in the marketplace.”
Regulatory scrutiny in California and Delaware will be crucial in determining how OpenAI’s nonprofit arm is valued in any future restructuring.
