OpenAI rejects Elon Musk’s $97.4 billion acquisition bid

OpenAI, led by Sam Altman, has officially rejected billionaire Elon Musk’s $97.4 billion offer to acquire the nonprofit company.

In a statement on X, OpenAI Board Chair Bret Taylor dismissed Musk’s proposal as an attempt to “disrupt his competition.”

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor wrote.

He further emphasized that any potential reorganization of OpenAI would be aimed at strengthening its nonprofit mission to ensure artificial general intelligence (AGI) benefits all of humanity.

Reports indicate that OpenAI also sent a letter to Musk’s legal team, stating that the offer was not aligned with the company’s core mission.

Earlier this week, Musk’s AI venture, xAI, along with a group of investors, made an unsolicited bid to acquire OpenAI’s nonprofit division for $97.4 billion. The offer was swiftly dismissed by Altman and the board.

Andy Nussbaum, legal counsel for OpenAI’s board, stated that Musk’s bid “doesn’t set a value for OpenAI’s nonprofit” and reiterated that the organization was “not for sale.”

Musk, a co-founder of OpenAI, has a history of legal disputes with the company. He recently filed a lawsuit against OpenAI and Altman, accusing them of engaging in anticompetitive practices and fraudulent activities.

In October last year, Musk sought a preliminary injunction against OpenAI, alleging illicit activities, including altering its governance structure to a for-profit entity and transferring intellectual property assets.

OpenAI, however, has consistently dismissed Musk’s claims, calling his lawsuit “baseless” and lacking merit.