Elon Musk’s $97.4 Billion Offer to Acquire OpenAI Rejected
Tech billionaire Elon Musk, co-founder and former board member of OpenAI, recently made a staggering $97.4 billion offer to acquire full control of the artificial intelligence company. However, OpenAI’s board rejected the bid, citing concerns over its mission, autonomy, and ethical considerations. In an official statement released through OpenAI’s press account on X, board chair Bret Taylor described Musk’s offer as a deliberate move to interfere with his competition.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor said. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure [artificial general intelligence] benefits all of humanity.”
The New York Times reported that OpenAI also addressed a letter to Musk’s attorney, Marc Toberoff, stating that the proposal did not align with OpenAI’s mission and was not in its best interests. The decision has sparked widespread debate over the future of AI governance and Musk’s ambitions in the AI industry.
Why Did OpenAI’s Board Reject Musk’s Offer?
1. Preserving OpenAI’s Independence
OpenAI’s leadership believes that Musk’s takeover would jeopardize the organization’s autonomy, potentially shifting its priorities toward his business interests, mainly his AI venture, xAI. By rejecting the offer, the board aims to maintain control over its research direction and prevent external influence from dominating decision-making.
2. Conflict Between Mission-Driven and Profit-Driven Goals
Originally founded as a nonprofit, OpenAI transitioned into a capped-profit model to balance funding needs and ethical AI development. The board fears that Musk’s leadership could tilt the company towards a profit-driven agenda, undermining its commitment to developing AI for the broader good rather than commercial gain.
3. Musk’s History with OpenAI
Musk resigned from OpenAI’s board in 2018 after an unsuccessful attempt to take control of the company. The board considers this past power struggle as a key factor in rejecting his current bid, viewing it as a continuation of his previous efforts to dominate OpenAI’s direction.
4. Tensions with Microsoft and AI Ecosystem
OpenAI has a major partnership with Microsoft, which has invested billions in the organization. If Musk were to gain control, it could disrupt this collaboration, leading to legal and financial complications. The board is also concerned about potential conflicts between OpenAI’s roadmap and Musk’s competing AI firm, xAI.
5. Legal Risks and Regulatory Concerns
Musk has had numerous legal disputes and regulatory challenges in the past, including with the SEC and Tesla. OpenAI’s leadership fears that his control could introduce unnecessary instability, regulatory scrutiny, and delays in AI safety frameworks that are crucial for the industry’s responsible development.
Musk’s Response and Industry Reactions
Following the rejection, Musk expressed his displeasure, criticizing OpenAI for abandoning its original mission of creating open-source AI. He has also hinted at further legal action or alternative AI strategies, reinforcing his commitment to advancing artificial intelligence through xAI and other ventures.
Industry experts remain divided on the issue. Some argue that Musk’s resources and expertise could have accelerated OpenAI’s innovations, while others support the board’s stance on keeping AI development independent from corporate dominance.
What’s Next for OpenAI?
With Musk’s bid off the table, OpenAI will likely continue its current trajectory with Microsoft’s backing and expand its AI capabilities while maintaining governance safeguards. The rejection signals the board’s commitment to AI safety and ethical considerations, ensuring that advancements align with their foundational mission. As the AI race intensifies, OpenAI’s decision will shape the broader debate on who controls AI, how it is developed, and whether it remains a force for public benefit or corporate interests.
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