OpenAI has unanimously rejected a $97.4 billion acquisition proposal from billionaire Elon Musk, calling the bid a “disingenuous” attempt to disrupt its mission. The board stated the AI startup is not for sale, reaffirming its commitment to developing artificial general intelligence (AGI) for “all of humanity.”
The offer, led by Musk and his xAI startup, comes amid escalating tensions over OpenAI’s shift to a for-profit model. Musk co-founded OpenAI in 2015 but left in 2019, later criticizing its partnership with Microsoft and profit-driven direction. His lawyers argue the restructuring would enrich board members rather than serve public interests.
OpenAI Chairman Bret Taylor countered on X: “Any potential reorganization will strengthen our nonprofit mission.” The company claims Musk’s latest legal filings introduced new conditions that voided the bid’s legitimacy. Elon Musk responded by labeling CEO Sam Altman a “swindler” in social media exchanges.
The conflict highlights growing divides in AI governance. OpenAI’s proposed public benefit corporation structure aims to raise capital while maintaining ethical safeguards. With investors like Valor Equity Partners backing Musk’s consortium, and Microsoft’s existing $13 billion stake, the battle reflects high-stakes competition in shaping AI’s future.
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OpenAI board unanimously rejects Elon Musk's $97.4 billion proposal
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