OpenAI on Friday rejected a $97.4 billion acquisition offer from a consortium led by Elon Musk, stating that the company is not for sale.
The board dismissed any future bid as not genuine, reaffirming its nonprofit mission.
Musk’s offer was the latest in his efforts to challenge OpenAI’s transition toward a for-profit structure. The billionaire co-founded the company with CEO Sam Altman but later left and has since opposed its plans to secure capital.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” OpenAI Chairman Bret Taylor said in a statement on X. He added that any future restructuring would strengthen the nonprofit mission.
Musk’s lawyer, Marc Toberoff, said OpenAI was putting control of its for-profit arm up for sale, claiming the move would benefit certain board members instead of its stated purpose.
In December, OpenAI announced plans to create a public benefit corporation to raise more capital and remove restrictions from its nonprofit status. On Monday, Altman rejected the bid with a post on X, prompting Musk to respond with “swindler.” On Tuesday, Altman told Axios that OpenAI was not for sale.
Musk’s legal team, in a court filing on Wednesday, said the consortium— which includes his AI venture xAI— would withdraw its bid if OpenAI abandoned its for-profit transition. OpenAI’s legal representatives countered this, saying the conditions imposed by Musk’s group showed that the bid was not genuine.
Other investors in the consortium include Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel.
Elon Musk and Sam Altman have disagreed for years, particularly since OpenAI introduced its for-profit arm in 2019 and raised billions in funding.
Musk has accused OpenAI of moving away from its original purpose and sued Altman, OpenAI, and its largest backer, Microsoft, last year for breach of contract. In November, he sought a court injunction to block OpenAI’s transition to a for-profit structure.
