OpenAI has turned down Elon Musk’s $97.4 billion offer to purchase the company, affirming that it is not up for sale.
The Board chairman, Bret Taylor, confirmed that Musk’s bid was unanimously rejected by the board.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.
“Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI (artificial general intelligence) benefits all of humanity,” the chairman stated on Friday.
This offer was seen as Musk’s latest attempt to disrupt his competitors. In response, Musk filed court documents stating that he would retract the offer if OpenAI reverted to a non-profit “charity” model.
Currently, OpenAI functions with a hybrid structure, operating as a non-profit with a subsidiary generating revenue.
The move towards a for-profit model, which Altman believes is essential for the company’s growth, had led to tensions with Musk. Musk and Altman were part of the team that established OpenAI in 2015, with Musk initially funding $45 million.
Three years later, Musk departed the company, with OpenAI citing “a potential future conflict for Elon… as Tesla continues to become more focused on AI.”
Musk established his own artificial intelligence company called xAI early in 2023 after OpenAI ignited global fervor over the technology.
