A dispute between rival CEOs Elon Musk and Sam Altman has escalated as OpenAI’s board of directors unanimously rejected a $97.4 billion offer by an investment consortium led by Tesla CEO Musk.
The rejection comes amid efforts for OpenAI to transition into a for-profit business, with Altman seeking to preserve the nonprofit’s mission to benefit humanity. The move is seen as a strategic attempt to strengthen OpenAI and prevent potential disruption of its purpose.
In 2022, Musk purchased Twitter for $44 billion and renamed it X, while also leading an AI startup that competes against OpenAI. This latest bid from Musk’s consortium marks the latest turn in their public feud.
A lawyer representing the investors stated that Musk would withdraw his offer if OpenAI’s board prioritizes preserving the charity’s mission and ceases its conversion to a for-profit model. The investor group includes prominent figures such as Ari Emanuel, who leads Endeavor entertainment company.
The OpenAI board chairman has asserted that the organization remains committed to its nonprofit status, with no intention of selling itself at a fraction of Musk’s offer.
Source: https://finance.yahoo.com/news/openais-board-rejects-bid-elon-013037156.html