OpenAI rejected a $97.4 billion takeover bid from a consortium led by billionaire Elon Musk, stating that the company is not for sale and dismissing any future bids as insincere. The offer was Musk’s latest attempt to challenge the AI firm he co-founded alongside CEO Sam Altman but later parted ways with, as OpenAI seeks additional funding to maintain its competitive edge.
In a statement on X, OpenAI Chairman Bret Taylor, speaking on behalf of the board, emphasized that the company remains committed to its nonprofit mission and unanimously turned down Musk’s bid. He added that any restructuring would reinforce OpenAI’s goal of ensuring artificial general intelligence (AGI) benefits all of humanity.
In December, OpenAI had announced plans to restructure, proposing the creation of a public benefit corporation to facilitate greater investment while loosening the constraints imposed by its nonprofit parent.
Altman had previously dismissed Musk’s offer with a simple “no thank you” on X, prompting Musk to respond with “swindler.” In an interview with Axios, Altman reaffirmed that OpenAI was not for sale.
On Wednesday, Musk’s legal team indicated that the consortium, which includes his AI startup xAI, would withdraw its bid for OpenAI’s nonprofit arm if it abandoned its for-profit transition plans. However, OpenAI’s board, in a letter signed by company lawyer William Savitt and sent to Toberoff, argued that Musk’s offer was never a genuine bid, pointing out new conditions introduced in a recent court filing.
The Musk-led consortium also includes Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel.
Tensions between Musk and Altman date back years. Following Musk’s departure in 2019, OpenAI established a for-profit division that has since attracted billions in investment, leading Musk to accuse the company of straying from its original mission.
In August 2024, Musk sued Altman, OpenAI, and its largest investor, Microsoft, for alleged breach of contract. Later, in November, he sought a court order to prevent OpenAI from shifting to a for-profit model.
