8:08 pm - February 20, 2025
In a dramatic and high-stakes move, the board of directors at OpenAI has officially rejected a $97.4 billion offer from Elon Musk and a group of investors to acquire the company. This decision marks the latest chapter in a bitter and ongoing feud between Musk and OpenAI, particularly over the company’s future direction and restructuring plans. In a statement shared on X (formerly Twitter) on Friday, OpenAI Board Chair Bret Taylor made it clear that the company is not for sale. “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor wrote. The rejection underscores OpenAI’s commitment to its mission and its resistance to external pressures, even from one of the most influential figures in tech.
The conflict between Musk and OpenAI has been simmering for years, with tensions escalating over the company’s planned restructuring. OpenAI, originally founded as a nonprofit research lab with a for-profit entity, has been exploring changes to its structure to make fundraising easier and to increase returns for investors and employees. Musk, who was one of OpenAI’s co-founders and left the company in 2018, has been vocal in his opposition to this plan. He has criticized the restructuring as a departure from OpenAI’s nonprofit mission and has accused the company of prioritizing profits over its original goal of ensuring that artificial general intelligence (AGI) benefits all of humanity. In a bold move earlier this week, Musk and his investor group offered to buy OpenAI, promising to restore it to an “open-source, safety-focused force.” However, the offer was met with swift and unequivocal rejection from OpenAI’s leadership.
OpenAI CEO Sam Altman responded to Musk’s offer with a blend of humor and defiance. “No thank you but we will buy Twitter for $9.74 billion if you want,” Altman quipped on X, referencing Musk’s own purchase of the platform. The comment not only highlighting the tension between the two tech leaders but also signaling OpenAI’s confidence in its independence and vision for the future. Bret Taylor, who also led the board of X during Musk’s takeover of the platform, reinforced OpenAI’s commitment to its mission. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure (Artificial General Intelligence) benefits all of humanity,” he stated. The rejection of Musk’s offer and the strong statements from OpenAI’s leadership suggest that the company is determined to chart its own course, free from Musk’s influence.
The feud between Musk and OpenAI has been marked by legal battles as well as public sparring. In June 2024, Musk filed a lawsuit against OpenAI, alleging that the company’s restructuring plan was misguided and that it was prioritizing profits over its nonprofit mission. However, the lawsuit was dropped after OpenAI published a blog post that included emails from Musk’s early days at the company. These emails appeared to contradict Musk’s claims, as they showed him acknowledging the need for OpenAI to generate significant revenue to fund its AI ambitions. The emails suggested that Musk’s opposition to the restructuring plan was not entirely aligned with his past statements, and OpenAI used this to its advantage in defending its position.
Undeterred by the initial setback, Musk filed a new lawsuit in August 2024, accusing OpenAI of rushing to develop powerful AGI technology with the sole aim of maximizing profits. He also alleged that the company was engaging in racketeering activities. OpenAI has fired back, accusing Musk of being motivated by jealousy over his diminished role in the company. After leaving OpenAI in 2018 following an unsuccessful attempt to have Tesla acquire it, Musk has reportedly been uneasy about the company’s success without his direct involvement. In a recent interview with Bloomberg TV at the AI Summit in Paris, OpenAI CEO Sam Altman addressed the situation, stating, “I wish he would just compete by building a better product.” The comment reflects OpenAI’s focus on innovation and its determination to succeed on its own terms.
As the situation continues to unfold, the stakes remain high for both OpenAI and Musk. OpenAI’s rejection of Musk’s offer sends a clear message about its independence and confidence in its mission. The company’s leadership has made it clear that it will not be swayed by external pressures or distracted by personal rivalries. Meanwhile, Musk’s failed bid and ongoing legal challenges suggest that his efforts to influence OpenAI’s direction are facing significant resistance. The outcome of this feud could have far-reaching implications for the AI industry, as both OpenAI and Musk’s ventures shape the future of artificial intelligence. For now, OpenAI appears determined to stay the course, focused on its mission to ensure that AGI benefits humanity as a whole.