On Friday, OpenAI dismissed a $97.4 billion acquisition bid from a consortium led by billionaire Elon Musk, reaffirming that the company is not for sale and rejecting any future offers as insincere.
Musk’s unsolicited bid marks his latest attempt to prevent OpenAI—the company he co-founded alongside CEO Sam Altman but later exited—from evolving into a for-profit entity. OpenAI is actively seeking additional funding to maintain its competitive edge in the artificial intelligence sector.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” the company stated on X, citing OpenAI Chairman Bret Taylor. “Any potential reorganization will reinforce our nonprofit mission to ensure AGI benefits all of humanity.”
Musk’s attorney, Marc Toberoff, responded by accusing OpenAI of positioning its for-profit arm for sale to benefit select board members rather than serving the nonprofit’s intended mission.
In December, OpenAI announced plans to restructure, proposing the creation of a public benefit corporation to facilitate greater capital acquisition while reducing restrictions imposed by its current nonprofit framework.
Altman swiftly dismissed the consortium’s bid with a “no thank you” post on X, prompting Musk to retort with “swindler.” On Tuesday, Altman reiterated to Axios that OpenAI was not up for sale.
Musk’s legal team stated in a court filing on Wednesday that the consortium—including Musk’s AI venture, xAI—would withdraw its bid for OpenAI’s nonprofit arm if it abandoned its shift toward a for-profit model.
OpenAI’s board later countered with a letter signed by company attorney William Savitt, stating: “Two days ago, you introduced new material conditions in court, revealing that your much-publicized ‘bid’ is, in fact, not a bid at all.”
The consortium’s investors include Valor Equity Partners, Baron Capital, and Hollywood executive Ari Emanuel.
Musk and Altman have been at odds for years. After Musk’s departure in 2019, OpenAI established a for-profit subsidiary that attracted billions in investment, prompting Musk to accuse the company of straying from its original mission in pursuit of financial gains.
Last August, Musk sued Altman, OpenAI, and its biggest investor, Microsoft, for alleged breach of contract. In November, he sought a federal court injunction to prevent OpenAI from transitioning into a for-profit entity.
