OpenAI, the creator of ChatGPT, has rejected a $97.4 billion takeover offer from a consortium led by Elon Musk, declaring that the company is not for sale. In a sharp rebuke to Musk’s latest move, the board made it clear that any attempt to acquire the startup is not only unwelcome but would be insincere.
The bold bid, which Musk’s group launched in an effort to thwart OpenAI’s plans for a for-profit future, marks the latest chapter in a heated saga between Musk and OpenAI’s CEO, Sam Altman. Musk, a co-founder of OpenAI, had parted ways with the company years ago, yet his influence remains undeniable as he seeks to reshape the AI landscape.
A Stand for Nonprofit Ideals
OpenAI emphasized its commitment to its nonprofit mission, stressing that any reorganization plans would only reinforce its original purpose: to ensure that artificial general intelligence (AGI) serves all of humanity. “OpenAI is not for sale,” stated Bret Taylor, OpenAI’s Chairman, on X (formerly Twitter). “The board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition. Our future reorganization will strengthen our nonprofit status, not weaken it.”
Despite the rejection, Musk’s legal team hit back, accusing OpenAI of putting its control up for sale under the guise of promoting a charitable cause. “Instead of enriching the broader public good, this move serves to benefit certain members of the board,” said Marc Toberoff, Musk’s lawyer, in a public statement.
Musk’s Ongoing War with OpenAI
Musk’s legal push is just the latest salvo in his ongoing battle with OpenAI. The tensions go back years. In late December 2024, OpenAI revealed plans to overhaul its structure, announcing it would create a public benefit corporation to help raise more capital and provide flexibility to its growing ambitions. This move was seen as a step toward loosening the nonprofit constraints, something Musk has openly opposed.
When Musk’s consortium first proposed the $97.4 billion offer, OpenAI’s Altman swiftly rejected it with a terse “no thank you” posted on X. Musk’s response was equally sharp, calling Altman a “swindler.” The clash is more than just a corporate disagreement—it’s an ideological rift over the role of AI in society and whether it should be driven by profit or by a broader public mission.
The Battle Over AI’s Future
The high-stakes drama continued when Musk’s legal team, which includes representatives from his own AI startup xAI, claimed that OpenAI’s move to shift to a for-profit model would hurt its charitable mission. Musk’s lawyers have also threatened to withdraw their offer entirely if OpenAI continues with its plans to go for-profit.
In a formal letter sent to Musk’s lawyer, William Savitt, representing OpenAI, declared that Musk’s so-called “bid” was no longer credible. “You’ve filed documents adding new conditions to the proposal. It is now clear that this is not a genuine offer,” the letter read.
In addition to Musk’s xAI, other major investors in the consortium include Valor Equity Partners, Baron Capital, and Hollywood mogul Ari Emanuel, who have all backed Musk’s vision of a for-profit AI future.
A Longstanding Rift
The conflict is deeply personal for Musk, who helped co-found OpenAI in 2015 but left the company in 2019. OpenAI then shifted gears, creating a for-profit arm that has raised billions in funding, including substantial backing from Microsoft. This move, which Musk has repeatedly criticized, led him to accuse OpenAI of abandoning its original mission in favor of profit.
Musk’s frustration boiled over last year, when he filed a lawsuit against Altman, OpenAI, and Microsoft, claiming they had breached their contract by prioritizing financial gain over the greater good.
As the battle intensifies, the future of OpenAI remains uncertain. Will it continue on its path to become a more commercially driven entity, or will it stay true to its founding values and resist Musk’s offer for a takeover? Only time will tell, but one thing is clear: the AI race is heating up, and Musk is determined to be at the forefront.
