OpenAI’s board has unanimously rejected Elon Musk’s $97.4 billion takeover bid, reaffirming the company’s commitment to its mission and current structure, as reported by CBS News and Axios.
Elon Musk’s $97.4B Bid
In a bold move that sent shockwaves through the tech industry, Elon Musk placed a monumental $97.4 billion bid to acquire OpenAI on February 13, 2025. This unprecedented offer came with a significant condition: OpenAI would need to revert to its original nonprofit model. Musk’s proposal was seen by many as more than just a financial transaction, but rather a strategic attempt to reshape the direction of one of the world’s leading AI research organizations. The bid’s magnitude and its stipulations highlighted Musk’s ongoing concerns about OpenAI’s shift away from its founding principles, as well as his desire to influence the future of artificial intelligence development.
OpenAI’s Firm Rejection
The unanimous rejection of Musk’s takeover bid by OpenAI’s board was swift and unequivocal. Chairman Bret Taylor characterized the offer as an “attempt to disrupt his competition,” while the company’s attorney, William Savitt, stated that the proposal “is not in the best interests of OAI’s mission and is rejected.” This decisive stance underscores the leadership’s commitment to maintaining OpenAI’s current trajectory and organizational structure. CEO Sam Altman and the board have shown no interest in altering the company’s course, despite the substantial financial incentive offered by Musk. The rejection reaffirms OpenAI’s dedication to its mission of ensuring that artificial general intelligence benefits all of humanity, a goal they believe is best served through their existing “capped-profit” model rather than reverting to a purely nonprofit structure.
Tensions Over Nonprofit Model
The rejection of Musk’s bid highlights the ongoing tensions between OpenAI and its early investor. Musk, who has been critical of OpenAI’s shift from a purely nonprofit model to a “capped-profit” structure, filed a lawsuit against the company and CEO Sam Altman last year, alleging a breach of the organization’s founding principles. This conflict underscores the broader debate within the AI industry about balancing technological advancement, ethical considerations, and financial sustainability. OpenAI maintains that its current structure, which includes both nonprofit and for-profit components, is essential for securing the necessary capital for advanced AI research while upholding its commitment to safety and public benefit.
