OpenAI’s board of directors has unanimously rejected a $97.4 billion bid by Elon Musk and other investors to purchase the company. The decision marks another twist in the ongoing feud between OpenAI and Musk over the company’s restructuring plans.
Founded as a non-profit research lab, OpenAI aims to restructure its operations to make fundraising easier and increase returns for investors and employees. However, Musk has criticized this plan, claiming it would abandon OpenAI’s non-profit mission.
In response, a group of Musk-led investors offered to buy the company to return it to an “open-source, safety-focused force.” The bid could have significantly impacted the AI industry and given Musk even more power in tech.
OpenAI quickly rebuffed the offer, with CEO Sam Altman stating that he would rather spend the funds on buying Twitter. Altman emphasized that any reorganization of OpenAI will strengthen its non-profit mission to benefit humanity through Artificial General Intelligence (AGI).
The rejection of the bid has sparked criticism from Musk’s lawyer, Marc Toberoff, who claims that the board is not acting in good faith. He disputes Altman’s claim that OpenAI is not for sale and accuses the board of selling the company at a low price.
This is not the first time Musk has tried to block OpenAI’s restructuring plan. The billionaire has sued the company multiple times, including in June 2024, when he dropped an initial lawsuit after OpenAI published emails from his early days at the company that contradicted his claims.
Musk also filed a new lawsuit in August 2024, accusing OpenAI of pursuing profit and engaging in racketeering. In contrast, Altman believes Musk is simply jealous because he is no longer involved with the startup.
The ongoing feud between OpenAI and Musk highlights the challenges of navigating complex issues like AI development and non-profit operations. As OpenAI moves forward with its restructuring plans, it will be crucial to maintain its commitment to its mission and ensure that any changes benefit humanity as a whole.
Source: https://edition.cnn.com/2025/02/14/tech/openai-board-rejects-musk-purchase-offer/index.html