OpenAI on Friday rejected a $97.4 billion bid from a consortium led by billionaire Elon Musk for the ChatGPT maker, saying the startup just isn’t on the market and that any future bid could be disingenuous.
The unsolicited approach is Musk’s latest try and block the startup he co-founded with CEO Sam Altman — but later left — from becoming a for-profit firm, because it looks to secure more capital and stay ahead within the AI race.
“OpenAI just isn’t on the market, and the board has unanimously rejected Mr. Musk’s latest try and disrupt his competition. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to make sure AGI advantages all of humanity,” Chairman Bret Taylor said, on behalf of its board.
Musk’s lawyer Marc Toberoff didn’t reply to a request for comment.
On Tuesday, Altman told news website Axios that OpenAI was not on the market. He had rebuffed the offer on Monday with a “no thanks” on X, prompting Musk to retort: “swindler.”
The consortium, including Musk’s AI startup xAI, would withdraw its bid for OpenAI’s non-profit arm if it drops plans to change into a for-profit entity, the billionaire’s lawyers said in a court filing on Wednesday.
“Two days ago, you filed a pleading in court adding recent material conditions to the proposal. In consequence of that filing, it’s now apparent that your clients’ much publicized ‘bid’ is in truth not a bid in any respect,” the OpenAI board said, in accordance with a letter signed by William Savitt, a lawyer representing the corporate, sent to Toberoff on Friday.
Other investors within the consortium include Valor Equity Partners, Baron Capital and Hollywood power broker Ari Emanuel.
Altman and Musk have been at loggerheads for years.
After Musk’s departure in 2019, OpenAI created a for-profit arm that has drawn billions of dollars in funding, sparking allegations from Musk that the startup breached its original mission by putting profit ahead of the larger public good.
Musk sued Altman, OpenAI, and its biggest backer Microsoft in August last 12 months for the alleged breach of contract.
In November, Musk asked a US district judge for a preliminary injunction to dam OpenAI from moving to a for-profit structure.
