The board of OpenAI has unanimously turned down a $97.4 billion acquisition offer led by Elon Musk and a group of investors, reaffirming its stance that the AI research company is not for sale."OpenAI is committed to its mission, and we have no intention of selling," OpenAI Board Chair Bret Taylor stated in an announcement on X (formerly Twitter) on Friday. "This bid was yet another attempt by Musk to disrupt his competition."
The rejection marks the latest development in a longstanding battle between Musk and OpenAI. Originally a co-founder of OpenAI, Musk departed in 2018 after failing to persuade fellow leaders to merge the company with Tesla. Since then, he has been a vocal critic of OpenAI’s shift from a non-profit research entity to a more commercially driven model.
Earlier this week, Musk and his investment partners proposed acquiring OpenAI with the promise of restoring it to an “open-source, safety-first” organization. If successful, the deal would have significantly reshaped the artificial intelligence landscape and strengthened Musk’s position in the industry, especially given his competing AI venture, xAI.However, OpenAI swiftly dismissed the proposal. In a pointed response, CEO Sam Altman posted on X: "No thank you, but we’ll buy Twitter for $9.74 billion if you’re interested."
Musk’s legal confrontations with OpenAI date back to June 2024, when he filed a lawsuit accusing the company of abandoning its original non-profit mission to maximize profits. However, OpenAI countered by publishing emails from Musk himself that acknowledged the necessity of securing large-scale funding to support AI development.
Despite dropping that initial lawsuit, Musk filed a fresh complaint in August 2024, accusing OpenAI of reckless profit-driven behavior and even alleging racketeering. OpenAI, in turn, dismissed Musk’s claims as stemming from resentment over his diminished influence in the company.
Marc Toberoff, a lawyer representing Musk’s investor group, criticized the board’s rejection of the bid. "It’s no surprise, considering Altman’s earlier remarks. But the board has a fiduciary responsibility to fairly evaluate offers in good faith," he stated. "They’re just selling OpenAI to themselves at a fraction of the price Musk offered. How exactly does that serve all of humanity?"
With artificial intelligence development accelerating, competition between OpenAI and Musk’s xAI is intensifying. Speaking at the AI Summit in Paris on Tuesday, Altman took a direct shot at Musk: "I wish he’d focus on competing by building a better product."As the AI industry continues to evolve, the clash between OpenAI and Musk underscores the high stakes involved in shaping the future of artificial intelligence—both in terms of profit and ethical responsibility.