OpenAI’s board chairman, Bret Taylor, announced on Friday that the company has unanimously rejected Elon Musk’s $97.4 billion acquisition offer. The statement, released via Musk-owned platform X (formerly Twitter), emphasized that OpenAI remains committed to its independent status and mission.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” stated Taylor. He further highlighted that any future reorganization would reinforce OpenAI’s non-profit mission to ensure artificial general intelligence (AGI) benefits all of humanity.
Musk had previously filed court documents proposing to retract his offer if OpenAI reverted to a non-profit “charity” model. OpenAI operates under a hybrid structure consisting of a non-profit entity and a profit-generating subsidiary. This arrangement shifted from its original non-profit status, a move spearheaded by OpenAI’s CEO Sam Altman to facilitate the company’s development.
"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 benefits all of humanity."
—Bret Taylor, Chair, on behalf of…
— OpenAI Newsroom (@OpenAINewsroom) February 14, 2025Musk, an initial co-founder and significant financier with a $45 million contribution, parted ways with OpenAI in 2018 due to potential conflicts of interest as his involvement with AI at Tesla deepened. Following this, in early 2023, Musk launched his AI venture, xAI, further fueling the rivalry after OpenAI gained global attention for its advancements in AI technology.
The escalating costs associated with AI development have led OpenAI to explore a new corporate framework that allows equity investments and ensures more robust governance. This transition to a fully for-profit organization is awaiting approval from regulatory bodies in California and Delaware, focusing on how the non-profit sector will be evaluated as a shareholder in the new entity.
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Investors currently negotiating with OpenAI aim for a lower valuation to enhance their stakes in the profit-driven subsidiary. Musk’s substantial bid, which significantly exceeds ongoing valuation discussions by about $30 billion, seems intended to influence OpenAI’s fundraising activities negatively.
OpenAI’s Chief Global Affairs Officer Chris Lehane commented on Musk’s offer, suggesting it originated from a competitor lagging in technological advancements and market competition.
As OpenAI continues to navigate these challenges, the board’s rejection of Musk’s offer reaffirms its dedication to advancing AI technology as a public good, prioritizing ethical considerations and widespread benefits.
