Artificial intelligence company OpenAI has rejected a $97.4 billion bid by Elon Musk and a consortium of investors to gain control of the company, deepening a long-standing feud between Mr. Musk and OpenAI’s chief executive, Sam Altman.
In a statement, OpenAI’s board of directors chairman Bret Taylor said that the company is not for sale and has unanimously rejected Mr. Musk’s bid. The rejection comes after Mr. Musk made his offer on Monday for the assets of OpenAI, which controls a nonprofit organization.
Mr. Musk had attempted to disrupt OpenAI’s competition by making the bid, but it was met with resistance from the board. Mr. Altman hopes to shift control of the company to its investors, including Microsoft, as part of a plan to restructure the company’s corporate structure.
The rejection has sparked criticism from Mr. Toberoff, who represents Mr. Musk and the investors, saying that OpenAI is engaging in “self-dealing” by selling the nonprofit’s assets at a fraction of what was offered. He questioned whether the planned restructuring benefits humanity as stated by OpenAI’s mission.
This move comes amid a long-standing rivalry between Mr. Musk and Mr. Altman, who co-founded OpenAI in 2015. Mr. Musk left the organization after a battle for control, and Mr. Altman has since worked on a plan to restructure the company to gain independence from its nonprofit board.
The rejection of the bid may complicate plans to separate OpenAI’s assets from its nonprofit board. The nonprofit’s value has not been established, which could impact the amount that OpenAI would need to pay for its independence. Mr. Musk had filed a lawsuit last year to block OpenAI’s plans to restructure.
California’s attorney general Robert Bonta said that his office is monitoring OpenAI’s restructuring plan and will ensure it is done correctly. Meanwhile, Mr. Musk is also raising funds for his AI company xAI, which is in talks for a new financing round valued at up to $75 billion.
Source: https://www.nytimes.com/2025/02/14/technology/openai-elon-musk.html