Musk’s $97.4B Offer To Buy OpenAI Gets Unanimous No

In a decisive statement, OpenAI’s board has unanimously rejected an offer led by Elon Musk to acquire the nonprofit entity controlling the AI pioneer for $97.4 billion. In a statement posted on Musk-owned X (formerly Twitter), board chairman Bret Taylor declared, “OpenAI is not for sale,” emphasizing that any reorganization will only bolster the nonprofit’s mission to ensure that artificial general intelligence benefits all of humanity.

Musk, one of OpenAI’s co-founders who provided initial funding of $45 million before departing three years ago, has been a vocal critic of the company’s shift toward a for-profit model a move that OpenAI’s current CEO, Sam Altman, defends as essential for scaling the company. Musk filed court documents indicating that he would withdraw his bid if OpenAI’s board does not revert the organization to its original nonprofit, “charity” model.

OpenAI currently operates under a hybrid structure, combining a nonprofit arm with a revenue-generating subsidiary. This arrangement, coupled with the massive costs associated with developing cutting-edge AI models, has driven OpenAI to pursue a corporate structure that grants investors equity while ensuring stable governance. Regulatory approvals from authorities in California and Delaware are still pending to finalize this transition.

Critics, including OpenAI’s Chief Global Affairs Officer Chris Lehane, dismiss Musk’s bid as coming from a competitor that has struggled to keep pace with OpenAI’s technological advancements. Lehane highlighted that the offer appears designed to disrupt the company’s fundraising efforts by valuing the nonprofit arm approximately $30 billion above current negotiation levels.

As tensions continue to simmer between Musk and OpenAI, the rejection underscores the board’s commitment to preserving the organization’s original mission and values amid evolving market pressures and competitive challenges in the AI industry.