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OpenAI has declined a $97.4 billion acquisition bid from a consortium led by billionaire Elon Musk, reaffirming that the company is not for sale. The board unanimously rejected the unsolicited offer, stating that any future bids of this nature would be insincere.
Musk, a co-founder of OpenAI alongside CEO Sam Altman, later parted ways with the company and has since opposed its transition to a for-profit model. His latest attempt to gain control comes as OpenAI seeks additional funding to maintain its competitive edge in the artificial intelligence (AI) industry.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” the company said in a statement on X (formerly Twitter), quoting board chairman Bret Taylor. “Any potential restructuring of OpenAI will reinforce our nonprofit mission to ensure AGI benefits all of humanity.”
By Ropafadzo Mashawi
In response, Musk’s attorney, Marc Toberoff, argued that OpenAI’s ongoing structural changes serve to benefit certain board members rather than the nonprofit cause. In December, OpenAI announced plans to establish a public benefit corporation, which would facilitate greater capital acquisition and relax restrictions imposed by its nonprofit parent organization.
Altman dismissed Musk’s offer with a brief “no thank you” on X, prompting Musk to respond with “swindler.” Speaking to Axios, Altman reaffirmed that OpenAI is not for sale.
Musk’s legal team later indicated that his consortium, which includes his AI startup xAI, would withdraw its bid if OpenAI abandoned its plans to transition into a for-profit entity. However, OpenAI’s board countered that Musk’s actions suggested his bid was not genuine. In a letter sent by OpenAI’s legal representative William Savitt, the board stated that Musk’s legal filing had introduced new conditions, revealing that the offer was not a true bid.
Musk’s consortium includes investors such as Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel. Tensions between Musk and Altman have persisted for years, particularly after Musk’s departure from OpenAI in 2019. Following his exit, the company established a for-profit division that has since secured billions in funding, leading Musk to accuse OpenAI of straying from its original mission by prioritizing profit over public benefit.
Last year, Musk filed a lawsuit against Altman, OpenAI, and Microsoft—one of OpenAI’s primary investors—alleging breach of contract. In November, he sought a federal court injunction to prevent OpenAI from transitioning into a for-profit business
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