Elon Musk’s $97.4 billion bid for OpenAI, backed by a group of investors, faced an official rejection as OpenAI Chairman Bret Taylor confirmed on Friday. The board unanimously opposed Musk’s proposal, reinforcing the company’s stance on maintaining its nonprofit mission.
Earlier this week, confusion arose regarding the filing process, leading OpenAI to claim until Friday that no formal proposal had been received. Once communication was clarified, Taylor stated on X: “OpenAI is not for sale, and the board has unanimously rejected Musk’s recent attempt to undermine competition.” He also emphasized that any future reorganization of OpenAI would further align with its goal of advancing artificial general intelligence (AGI) for the common good.
Musk’s Response and Prior Legal Disputes
Musk’s offer had already been met with a sharp response from OpenAI CEO Sam Altman. In a previous statement, Altman rejected the bid, sarcastically suggesting that OpenAI could instead purchase Musk’s social network, X (formerly Twitter), for $9.74 billion.
Musk, a co-founder of OpenAI who left the company in 2018, has openly criticized its direction since at least 2023. To counter OpenAI, he launched his own AI company, xAI, and in 2024, filed two lawsuits against OpenAI’s leadership, alleging a departure from its nonprofit commitments. The first lawsuit was later withdrawn after OpenAI published internal correspondence revealing Musk’s past agreement that the organization would require significant funding and a sustainable business model.
Musk’s Lawyer Challenges the Board’s Decision
Following OpenAI’s formal rejection of the bid, Musk stated that he would reconsider acquiring the company if it abandoned its nonprofit structure in favor of a commercial approach, reminds NIX Solutions. After the board’s refusal, Musk’s lawyer, Marc Toberoff, criticized OpenAI’s leadership, claiming they were attempting to “sell OpenAI to themselves” at a fraction of Musk’s offer. He questioned how such a decision would serve “all of humanity,” implying that Musk’s proposal would have been a better alternative.
While OpenAI remains steadfast in its mission, the situation continues to develop. We’ll keep you updated as more details emerge.