OpenAI has turned down a $97.4 billion acquisition proposal from a consortium led by billionaire Elon Musk, stating that the company is not for sale and questioning the sincerity of any future offers.
This move is Musk’s latest attempt to prevent the company he co-founded with CEO Sam Altman from transitioning into a for-profit entity, as OpenAI seeks additional capital to maintain its lead in the artificial intelligence sector.
In a statement on X (formerly Twitter), OpenAI’s board declared, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.” Musk’s attorney, Marc Toberoff, countered by alleging that OpenAI’s actions aim to “enrich its certain board members rather than the charity.”
In late December, OpenAI announced plans to restructure by establishing a public benefit corporation to facilitate increased capital raising and alleviate constraints imposed by its current nonprofit status. Altman previously dismissed the consortium’s offer with a “no thank you” on X, leading Musk to label him a “swindler.” Subsequently, Altman affirmed to Axios that OpenAI is not on the market.
Musk’s legal team indicated that the consortium, which includes his AI startup xAI, would retract its bid if OpenAI abandons its for-profit plans. Other consortium members encompass Valor Equity Partners, Baron Capital, and Hollywood agent Ari Emanuel.
The rift between Altman and Musk has deepened over the years. After Musk’s departure in 2019, OpenAI formed a for-profit division, attracting substantial funding