OpenAI’s board of directors has unanimously turned down a $97.4 billion buyout proposal led by Elon Musk and a group of investors, reaffirming that the company is not for sale.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” OpenAI Board Chair Bret Taylor stated in an announcement on X.
The decision is the latest development in an ongoing dispute between Musk and OpenAI regarding the company’s restructuring. Originally founded as a non-profit research entity with a for-profit arm, OpenAI is working toward a restructuring plan that aims to facilitate fundraising while increasing returns for employees and investors. Musk has criticized this move, arguing it deviates from OpenAI’s original mission of prioritizing public benefit.
In response, Musk and his investor group proposed acquiring OpenAI to realign it with an open-source, safety-focused model. Had the offer been accepted, it would have significantly reshaped the AI landscape while further strengthening Musk’s influence in the tech industry, especially as the owner of OpenAI rival xAI.
Sam Altman, OpenAI’s CEO, swiftly dismissed the offer with a bold counter on X, saying, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Taylor, who previously chaired X’s board during Musk’s acquisition of the platform, reaffirmed OpenAI’s commitment to its mission, stating, “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure that Artificial General Intelligence benefits all of humanity.”
Marc Toberoff, the attorney representing Musk’s investor group, called the rejection “no surprise” but argued that OpenAI’s board had a fiduciary duty to fairly evaluate the offer. “They’re just selling it to themselves at a fraction of what Musk has offered. How does that benefit ‘all of humanity’?” Toberoff questioned.
This is not Musk’s first attempt to challenge OpenAI’s direction. In June 2024, he sued the company, alleging it was prioritizing profit over its original non-profit mission. However, the lawsuit was dropped after OpenAI released past emails from Musk that acknowledged the necessity of raising substantial funds for AI development. Musk later filed a fresh lawsuit in August 2024, accusing OpenAI of prioritizing profits and engaging in racketeering.
OpenAI, in turn, has suggested that Musk’s objections stem from frustration over no longer being involved in the company. Musk had left OpenAI in 2018 after failing to convince his co-founders to merge it with Tesla.
Speaking at the AI Summit in Paris, Altman remarked, “I wish he would just compete by building a better product.”
