OpenAI’s board has firmly turned down Elon Musk’s recent $97.4 billion takeover offer. In a statement, Bret Taylor, the chair of OpenAI’s board, made it clear that the company is not for sale and that the board unanimously rejected Musk’s latest attempt to disrupt its operations.
The company’s legal counsel, William Savitt, communicated in a letter to Musk’s attorney that the proposal did not align with OpenAI’s mission. Musk, who was an early investor in OpenAI, has been in a legal battle for nearly a year, claiming that the organization has strayed from its original purpose as a nonprofit.
OpenAI has been transitioning towards a more commercially successful model while still being a part of a nonprofit structure. This shift comes with the responsibility to ensure that artificial intelligence is developed safely and for the betterment of humanity, a mission Musk played a role in shaping.
Recently, Musk, along with his AI startup xAI, proposed a plan to acquire the nonprofit that has control of OpenAI. However, OpenAI’s legal team dismissed this bid, stating that Musk’s recent court filing introduced additional conditions that made it clear this was not a genuine bid.
Musk has asserted in his lawsuit that OpenAI is violating the foundational terms of his investment, which totaled around $45 million from the company’s inception until 2018. He intensified legal actions late last year, including new allegations against OpenAI’s partner, Microsoft, and seeking to stop OpenAI’s transition to a for-profit organization. A judge is currently reviewing Musk’s claims but has shown skepticism toward some aspects of his case.
