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OpenAI Rejects $97.4 Billion Takeover Bid from Elon Musk’s Investor Group
Key Takeaways
OpenAI has turned down an offer reported to be worth $97.4 billion from a group of investors led by Elon Musk. The announcement was made by OpenAI Chair Bret Taylor, who emphasized the company’s stance of being “not for sale.” This rejection comes after CEO Sam Altman publicly dismissed the offer on social media. Notably, Musk and Altman were co-founders of OpenAI in 2015, establishing it as a nonprofit organization. However, tensions have emerged, with Musk having previously sued OpenAI, alleging that the organization strayed from its mission.
OpenAI has firmly rejected a staggering $97.4 billion offer from an investor group associated with Elon Musk.
Bret Taylor, the chair of OpenAI, publicly stated on Musk-owned X that the AI company is “not for sale,” describing the offer as “Musk’s latest attempt to disrupt his competition.”
Musk’s venture, xAI, which positions itself as a competitor to OpenAI, is reportedly in the process of securing a $10 billion capital infusion that could elevate its valuation to approximately $75 billion.
In a correspondence to Musk’s attorney, William Savitt, OpenAI’s legal representative characterized the proposed offer as “not a bid at all,” as reported by CNBC. Neither Savitt nor Musk’s lawyer, Marc Toberoff, has responded publicly to requests for further comments.
Earlier this week, CEO Sam Altman addressed the takeover proposal in a post on X, humorously suggesting they would be willing to purchase Twitter for $9.74 billion instead. Musk’s response to Altman included the remark “Swindler,” and he also accused Altman of being a “Scam” in a follow-up discussion with another user.
The relationship between Musk and Altman is complex, with their partnership in founding OpenAI as a nonprofit organization in 2015 now clouded by legal disputes. The latest takeover offer followed Musk’s lawsuit against Altman and OpenAI last year, claiming that they prioritized profit over the company’s original mission to serve humanity. In a recent statement, Musk hinted he might withdraw the bid if OpenAI’s controlling nonprofit changed its plans to convert into a for-profit enterprise.
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