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The OpenAI board of directors denied formally the $97.4 billion offer from Elon Musk and investors seeking to buy the business.
Elon Musk’s Attempt to Buy OpenAI Halted by Board
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” OpenAI Board Chair Bret Taylor wrote in an announcement sent on X this Friday.
The announcement marks the latest chapter in the long-running dispute that has been brewing between OpenAI and Musk regarding ChatGPT. ChatGPT maker’s proposed restructuring. OpenAI was created in 2009 by a team which included Musk as well as OpenAI the CEO Sam Altman — as an academic research institute that was not the status of a business for profit. However, the company is planning to reform to facilitate fundraising, and improve profits for employees and investors.
Musk has been critical of the plan in the past as a reversal of the non-profit’s mission and earlier on Monday, an organization led by Musk of investors proposed to purchase the business in order to turn it as its former status as an “open-source, safety-focused force.” This offer could be the cause of a major change within the AI business and has could have made Musk the founder of OpenAI rival xAI and xAI, a greater force in the field of technology.
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OpenAI Remains Independent as Board Blocks Musk’s Deal
However, OpenAI immediately rejected the proposal and Altman tweeting to X on Monday saying “no thank you but we will buy twitter for $9.74 billion if you want.”
Taylor and his wife, who happened to be the chairman of X (then Twitter) when Musk launched his takeover bid for the company. Taylor stated in his statement from Friday for the OpenAI board: “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure (Artificial General Intelligence) benefits all of humanity.”
Marc Toberoff, an attorney of the investor group led by Musk In a statement, Marc Toberoff said that the denial is “no surprise” given Altman’s previous statement. Toberoff also disputed Altman’s claim OpenAI does not have a sale.
He added that they were shocked by the decision coming from the board “which has strict fiduciary duties to carefully consider the bid in good faith on behalf of the charity.”
“They’re just selling it to themselves at a fraction of what Musk has offered,” Toberoff stated. “Will someone please explain how that benefits ‘all of humanity?'”
This isn’t the first time Musk has made an effort to put barriers to the revamping strategy.
Musk filed a lawsuit against OpenAI at the end of June in 2024, but ended the lawsuit following the time that the firm posted a blog article with a list of Musk’s email messages from the company’s beginnings. The emails showed Musk accepting the necessity of OpenAI to generate significant sums of money in order for the computational resources necessary to fuel the company’s AI goals, which was opposed to claims in the lawsuit that OpenAI had been wrongly seeking profit.
Musk has filed a fresh lawsuit in the month of August 2024. He the lawsuit accused OpenAI of attempting to create strong “artificial general intelligence” technology to “maximize profits.” Musk claimed that the company was being involved in racketeering.
OpenAI however, in its turn, claimed that Musk of merely being unhappy that he wasn’t more involved with the business and that he had left OpenAI in the year 2018 after an unsuccessful attempt to convince his co-founders to allow Tesla buy the company.
in the course of an interview with Bloomberg TV at the AI Summit in Paris on Tuesday Altman spoke about Musk: “I wish he would just compete by building a better product.”
