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On Friday, OpenAI’s board of administrators rejected a $97.Four billion bid from a consortium of traders led by Elon Musk. Bret Taylor, chairman of OpenAI’s board, stated the factitious intelligence firm is “not for sale.” Taylor additionally stated that Musk’s buyout bid was his “latest attempt to disrupt his competition.”
Musk’s private historical past with OpenAI
Musk helped to cofound OpenAI again in 2015, alongside now-CEO Sam Altman and a gaggle of different tech leaders. Musk left OpenAI in 2018 and later based his personal AI firm, xAI, which is what Taylor was referencing within the board’s assertion.
Since leaving OpenAI, Musk has had a contentious relationship with each the corporate on the whole and Sam Altman particularly. His unsolicited buyout provide, and OpenAI’s subsequent rejection, are the newest growth in what many view as an ongoing feud.
Buyout bid prompted by OpenAI restructuring
Musk’s buyout provide was considerably prompted by a change in OpenAI’s company construction. The synthetic intelligence firm has an uncommon construction, the place the nonprofit entity OpenAI owns two for-profit company entities, OpenAI GP LLC and OpenAI Global LLC.
In September 2024, OpenAI introduced that it deliberate to restructure right into a for-profit profit company that might now not be managed by the nonprofit board. The change would additionally enable Altman to obtain fairness for the primary time.
Musk took difficulty with eliminating OpenAI’s nonprofit standing, saying “What they’re trying to do now is completely delete the nonprofit,” on the World Government Summit in Dubai on Feb. 13. Those remarks got here a day after Musk launched a courtroom submitting saying that he wouldn’t pursue the buyout provide so long as OpenAI continued to maintain its authentic construction as a nonprofit charity.
Altman claps again at Musk’s buyout provide
Altman shortly countered Musk’s provide, even earlier than the OpenAI board formally rejected the bid. The OpenAI CEO posted on X (previously Twitter): “no thank you but we will buy twitter for $9.74 billion if you want.”
His put up poked enjoyable at Musk’s $44 billion buy of Twitter, which he later rebranded as X. The app has declined precipitously in worth since Musk acquired it and, as of December 2024, was price about 72% much less than Musk paid for it. Many folks drew parallels between Musk’s takeover of Twitter and his tried takeover of OpenAI.
Musk had his personal transient retort for Altman. The X proprietor responded to Altman’s put up with a single phrase: “Swindler.” Altman didn’t reply to Musk’s put up, and the OpenAI board formally declined the provide on Feb. 14, 2025.
