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OpenAI rejects $97 billion takeover bid from Musk-led investor group

OpenAI rejects $97 billion takeover bid from Musk-led investor group
Sunday 16 February 2025 - 09:20 By: Dakir Madiha
Zoom

OpenAI's board of directors has unanimously rejected a $97.4 billion takeover bid from a group of investors led by Elon Musk. This decision highlights the ongoing conflict between the billionaire and the startup he co-founded before departing in 2019.

Musk, who now heads his own artificial intelligence company xAI, proposed the acquisition with the stated aim of returning OpenAI to its founding principles of openness and safety. His offer included funding from various investors, including Valor Equity Partners, Baron Capital, and Atreides Management. However, OpenAI's leadership deemed the attempt unacceptable.

In an official statement, OpenAI board chairman Bret Taylor declared that the company "is not for sale" and characterized Musk's approach as an attempt to "disrupt competition." OpenAI CEO Sam Altman dismissed the offer as "a competitor's tactic to slow us down."

This confrontation is part of a broader dispute between Musk and OpenAI. The entrepreneur accuses the startup of betraying its initial objectives by evolving into a for-profit structure, particularly through strategic partnerships with companies like Microsoft. In response, Musk has initiated legal proceedings to prevent OpenAI from continuing its commercial transformation.

While Musk hoped to influence OpenAI's future, the board's definitive response demonstrates that the company remains committed to its original mission: developing advanced artificial intelligence for humanity's benefit. Despite escalating tensions and ongoing lawsuits, OpenAI continues its development without the involvement of its former co-founder.

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