Elon Musk’s $974 Billion Acquisition Offer for OpenAI Rejected by Board

Technology billionaire Elon Musk’s proposal to acquire the development company OpenAI, which owns ChatGPT, has been rejected by the company’s board of directors.

“OpenAI has no intention of selling, and the board unanimously rejected Mr. Musk’s latest attempt to interfere with competitors,” said Bret Taylor, chairman of the OpenAI board, in a statement on Friday. “Any potential restructuring at OpenAI will strengthen our non-profit organization and ensure that Artificial General Intelligence (AGI) can benefit all of humanity.”

Musk put forth a plan to acquire OpenAI on Monday, offering $97.4 billion in hopes of acquiring the artificial intelligence (AI) development company. His lawyer, Marc Toberoff, confirmed that the proposal had the backing of Musk’s AI startup xAI and an investment group. Musk stated that the acquisition aims to regain control of OpenAI and restore its original mission, prioritizing public good over profit-driven operations.

In documents submitted to the court on February 12, Musk’s lawyer indicated that if OpenAI remains a non-profit organization, he will withdraw the acquisition proposal.

“If the board of OpenAI is prepared to uphold the charitable mission and commit to halting its asset conversions, removing the ‘for sale’ sign, Musk will withdraw the acquisition offer,” Musk’s lawyer wrote in the document. “Otherwise, the charity must be compensated, with the amount equivalent to what an independent buyer would be willing to pay.”

Taylor’s statement on Friday indicated that any restructuring at OpenAI would maintain its non-profit status.

Earlier this week, in response to Musk’s acquisition offer, OpenAI CEO Sam Altman expressed on social media, “No, thank you, but if you’re interested, we are willing to acquire Twitter for $97.4 billion,” signaling the board’s official rejection of the acquisition decision on Friday.

Musk acquired Twitter for $44 billion in 2022 and rebranded it as X. However, by October 2024, approximately two years after the acquisition, financial services company Fidelity estimated X’s market value to be around $9.4 billion, nearly 80% less than Musk’s initial acquisition price.

Altman and Musk co-founded OpenAI in 2015, but over the years, the two had differing opinions on the company’s direction. Musk resigned from the OpenAI board in 2018 and later accused the startup of deviating from its non-profit mission and excessively aligning with corporate interests (particularly Microsoft).

As an early investor and board member of OpenAI, Musk contributed approximately $45 million before leaving. Last year, he filed lawsuits in a California state court and later in federal court, alleging that OpenAI had strayed from its original purpose as a non-profit research laboratory.

Last week, Musk’s legal team and OpenAI’s lawyers appeared in court in the Northern District of California, with Judge Yvonne Gonzalez Rogers presiding. Musk sought to prevent OpenAI from officially turning into a for-profit organization, but the judge expressed skepticism about Musk’s claim of “irreparable harm.” However, she also voiced concerns about OpenAI’s relationship with Microsoft and allowed the case to proceed to a jury trial.

Toberoff, Musk’s lawyer, believes that if OpenAI persists in transitioning into a fully for-profit entity, it must fairly compensate for its non-profit origins.

Meanwhile, Altman’s lawyer views Musk’s lawsuit as a tactical ploy, accusing him of using litigation as a means to gain a competitive advantage after failing to obtain control of OpenAI.

“OpenAI is committed to the safe and beneficial development of Artificial General Intelligence (AGI),” Altman’s lawyer wrote in a legal document. “Musk once supported OpenAI’s mission, but chose to abandon it after being unable to gain successful control of the company.”

Altman’s lawyer argues that Musk’s claims lack legal and factual basis and requests that the court dismiss the lawsuit.

The original article, “OpenAI Rejects Elon Musk’s $97.4 Billion Buyout Offer,” was published in English in the Epoch Times.