In a decisive move on Friday, OpenAI officially turned down a staggering $97.4 billion offer from a consortium led by billionaire Elon Musk. The ChatGPT creator emphasized that it remains steadfast in its mission and is not open to sale, dismissing any future bids as insincere.
The unsolicited proposal marks Musk's latest effort to prevent OpenAI, which he co-founded alongside CEO Sam Altman before departing, from transitioning into a for-profit entity. As OpenAI seeks additional capital to maintain its edge in the competitive artificial intelligence (AI) sector, Musk appears determined to steer its direction.
OpenAI's board, represented by Chairman Bret Taylor, stated on X (formerly Twitter) that \"OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition.\" They further affirmed that any restructuring would enhance the nonprofit's mission to ensure that artificial general intelligence (AGI) benefits all of humanity.
AGI refers to highly advanced AI systems capable of understanding, learning, and adapting across a wide range of tasks, mirroring human cognitive abilities. It remains a pivotal objective for many in the AI development community.
Responding to the rejection, Musk's lawyer, Marc Toberoff, claimed that OpenAI is open to selling its for-profit arm, suggesting that such a move would benefit certain board members rather than the charity itself.
Earlier in December, OpenAI revealed plans to restructure by establishing a public benefit corporation, aiming to attract more substantial funding and lift restrictions imposed by its nonprofit origins.
CEO Sam Altman publicly declined the consortium's offer with a straightforward \"no thank you\" on X. Musk retaliated by labeling Altman a \"swindler,\" while Altman clarified to Axios that OpenAI has no intention of being sold.
In a recent court filing, Musk's legal team indicated that the consortium, including Musk's own AI startup xAI, would withdraw its bid if OpenAI abandons its plans to become a for-profit entity.
The OpenAI board, through a letter signed by lawyer William Savitt, conveyed to Toberoff that the consortium's bid lacks genuine intent, describing it as not a true bid at all.
The consortium also includes notable investors such as Valor Equity Partners, Baron Capital, and Hollywood figure Ari Emanuel.
The tension between Altman and Musk dates back years. Following Musk's departure in 2019, OpenAI established a for-profit arm that has attracted billions in investment, leading Musk to accuse the startup of deviating from its original mission by prioritizing profit over public good.
Last August, Musk initiated a lawsuit against Altman, OpenAI, and major investor Microsoft, alleging breach of contract. In November, he sought a federal court injunction to prevent OpenAI from restructuring into a for-profit model.
(With input from Reuters)
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OpenAI board unanimously rejects Elon Musk's $97.4 billion proposal
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