OpenAI Declines Elon Musk's $97.4 Billion Acquisition Offer
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Synopsis
OpenAI, under Sam Altman's leadership, has rejected Elon Musk's offer of $97.4 billion to purchase the nonprofit. The board emphasized that the organization is not for sale, with Musk's bid viewed as an attempt to disrupt competition. OpenAI aims to ensure artificial general intelligence benefits all of humanity.
Key Takeaways
- OpenAI firmly rejected Musk's $97.4 billion bid.
- Bret Taylor described the offer as competitive disruption.
- OpenAI's mission is to benefit humanity through AGI.
- Musk's actions include prior lawsuits against OpenAI.
- The board maintains that the nonprofit is not for sale.
San Francisco, Feb 15 (NationPress) OpenAI, led by Sam Altman, firmly turned down billionaire Elon Musk's proposal to acquire the nonprofit organization for $97.4 billion on Saturday.
In a statement posted on the X social media platform, OpenAI's Board Chair, Bret Taylor, labeled Musk's offer as “an attempt to disrupt his competition.”
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor stated.
He further added, “Any potential reorganization of OpenAI will fortify our nonprofit and its mission to ensure that AGI benefits all of humanity.”
Reports indicate that OpenAI has sent a letter to Musk’s legal representative, asserting that the bid does not align with the best interests of its mission.
Earlier this week, Musk’s AI venture, xAI, along with a consortium of investors, proposed to purchase OpenAI’s nonprofit for $97.4 billion.
Altman and the board of directors promptly dismissed the unsolicited offer.
In a statement, Andy Nussbaum, the legal counsel for OpenAI’s board, remarked that Musk’s proposal “doesn’t establish a value for OpenAI’s nonprofit” and reiterated that the nonprofit is “not for sale.”
Musk, a co-founder of OpenAI, has previously filed a lawsuit against the organization and Altman, accusing them of engaging in anticompetitive behavior and fraud, among other claims.
In October of last year, Musk sought a preliminary injunction against OpenAI for purported anti-competitive actions.
The motion accused OpenAI, CEO Altman, President Greg Brockman, Microsoft, LinkedIn co-founder Reid Hoffman, and former board member Dee Templeton of “various illicit activities and seeks to halt them.”
The allegations included converting OpenAI’s governance structure to a for-profit model and transferring significant assets, including intellectual property associated with OpenAI, Inc., its subsidiaries, or affiliates.
OpenAI responded by stating, “Elon’s fourth attempt, which once again recycles the same baseless complaints, continues to be utterly without merit.”
The AI organization had previously dismissed the lawsuit as “blusterous” and unfounded.
