OpenAI’s board of directors has unanimously rejected Elon Musk’s attempt to purchase the nonprofit entity that oversees the organization, according to a statement released on Friday.
Musk’s Bid Dismissed as Competitive Disruption
In a message posted through OpenAI’s official account on X, board chair Bret Taylor described Musk’s offer as a move intended to interfere with a competing AI company rather than a genuine acquisition attempt.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor stated. “Any restructuring of OpenAI will only serve to strengthen our nonprofit mission of ensuring artificial general intelligence benefits humanity as a whole.”
The rejection was also formalized in a letter sent to Musk’s legal representative, Marc Toberoff, emphasizing that the proposal was not in alignment with OpenAI’s core mission.
Details of Musk’s Offer
Musk, alongside his AI company xAI and a group of investors, had made an unsolicited offer on Monday to acquire OpenAI’s nonprofit entity for $97.4 billion. The proposal was quickly dismissed by CEO Sam Altman and the board, though not through an official vote at the time. Andy Nussbaum, the board’s legal counsel, reiterated that OpenAI’s nonprofit was “not for sale” and criticized Musk’s bid for failing to assign any meaningful value to the organization’s nonprofit operations.
Musk’s Legal Battle with OpenAI
Musk, a co-founder of OpenAI, is already entangled in a lawsuit against the company and Altman, alleging fraudulent behavior and violations of its original nonprofit commitments.
Originally founded as a nonprofit, OpenAI shifted to a “capped-profit” model in 2019, with the nonprofit holding ultimate control over the for-profit entity. Currently, OpenAI is undergoing another transition—this time to a public benefit corporation, a move Musk is actively opposing through his legal challenge.
Ongoing Dispute Over OpenAI’s Future
In a court filing on Wednesday, Musk’s legal team stated that he would withdraw his acquisition bid if OpenAI’s board maintains the company’s charitable mission and halts its for-profit conversion. OpenAI’s attorneys countered, arguing that Musk’s attempt to take control of the organization is a direct contradiction of his court arguments, where he previously claimed that restructuring OpenAI would undermine its charitable goals.
The public feud has intensified, with Musk’s supporters and Altman trading barbs throughout the week. Ari Emanuel, a backer of Musk’s proposal, accused Altman of betraying OpenAI’s original purpose. Meanwhile, Altman dismissed Musk’s bid as a deliberate attempt to hinder OpenAI’s progress, suggesting that Musk’s actions stem from a position of insecurity.
