On February 14, tech company OpenAI rejected a $97.4 billion bid led by Elon Musk, stating that the startup is not up for sale and any future bid would be insincere. Musk's unsuccessful offer is seen as an attempt to prevent the startup, which he co-founded with CEO Sam Altman but later left, from transitioning into a for-profit organization. OpenAI aims to raise more capital to maintain a competitive edge in the field of artificial intelligence.
In a statement, OpenAI emphasized its commitment to remaining a nonprofit entity and serving humanity's best interests: "OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition." Musk's lawyer, Marc Toberoff, declined to comment on the situation.
Despite Musk's efforts, Altman reiterated that OpenAI is not for sale and responded with a simple "no thank you" to the proposal, prompting Musk to refer to Altman as a "swindler." The consortium, which includes Musk's AI startup xAI, offered to support OpenAI's nonprofit activities if it opts not to pursue for-profit endeavors.
The dispute between Altman and Musk dates back to 2019 when Musk left OpenAI and the company established a for-profit division, sparking controversies over prioritizing profits over societal benefits. Musk filed a lawsuit against Altman and OpenAI, accusing them of breaching their contract. Musk sought a court injunction in an attempt to prevent OpenAI from transitioning to a for-profit model.
Investors in the consortium, apart from Musk's xAI, include Valor Equity Partners, Baron Capital, and Hollywood figure Ari Emanuel. The ongoing conflict between Altman and Musk reflects their differing visions regarding the future direction of OpenAI.