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OpenAI Rejects Elon Musk's $97.4 Billion Buyout Offer
OpenAI has unanimously rejected Elon Musk’s $97.4B takeover bid. The AI pioneer vows to stay mission-focused amid Musk’s push for a for-profit shift.
ND
by News Desk
2025-02-15
OpenAI Rejects Elon Musk's $97.4 Billion Buyout Offer

OpenAI’s board has unanimously rejected Elon Musk’s $97.4 billion buyout offer, reaffirming its commitment to its nonprofit mission of ensuring artificial intelligence benefits humanity.

"OpenAI is not for sale," declared board chairman Bret Taylor in a statement posted on Musk-owned X (formerly Twitter). Taylor accused Musk of attempting to "disrupt his competition" and emphasized that any restructuring would strengthen OpenAI's nonprofit foundation.

Musk’s Offer and the Rejection

The rejected bid, revealed in court documents filed on Wednesday, came with a caveat from Musk: he would withdraw the offer if OpenAI reverted to a nonprofit "charity" model.

OpenAI currently operates as a hybrid structure: a nonprofit overseeing a for-profit subsidiary that attracts investments to fund its resource-intensive AI projects.

Musk's $97.4 billion valuation—$30 billion higher than current investor negotiations—appears to have been a strategic move to disrupt OpenAI's ongoing fundraising efforts.

A History of Tension

The Musk-OpenAI relationship has been fraught with tension:

  • 2015: Musk co-founded OpenAI with Sam Altman and others, contributing $45 million in initial funding.
  • 2018: Musk left the company, citing a conflict with Tesla’s AI development.
  • 2023: Musk launched xAI, positioning it as a direct competitor to OpenAI.

The shift to a for-profit model—championed by CEO Sam Altman—was seen as essential for growth but also exacerbated tensions with Musk, who has been a vocal critic of OpenAI's partnership with Microsoft.

OpenAI's Growth and Future Plans

OpenAI's ChatGPT sparked global interest in generative AI in late 2022, propelling the company into AI industry leadership. To sustain this growth, OpenAI is navigating regulatory scrutiny as it transitions toward a traditional for-profit structure.

This process requires approval from authorities in California and Delaware, who will assess how the nonprofit arm is valued during the transition.

Industry Reactions

Chris Lehane, OpenAI's Chief Global Affairs Officer, dismissed Musk's offer as a desperate move by a struggling competitor:

"Musk’s offer came from a competitor who has struggled to keep up with the technology."

Meanwhile, industry analysts suggest the high valuation of $97.4 billion could indicate Musk's recognition of OpenAI's dominance in the AI landscape.

Musk’s Next Move

Musk has remained tight-lipped about potential next steps. However, given his track record of disruptive strategies—like the purchase of Twitter and creation of xAI—many speculate he may continue to challenge OpenAI’s growth.

What’s Next for OpenAI?

OpenAI appears steadfast in its mission:

  • Focus on AGI development to benefit humanity
  • Expand partnerships with key players like Microsoft
  • Navigate regulatory hurdles for its for-profit transition

The AI arms race is far from over, but for now, OpenAI has drawn a clear line: Elon Musk won't be at the helm of the ChatGPT creator anytime soon.

 
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