OpenAI CEO Sam Altman has firmly dismissed Elon Musk’s attempt to acquire the AI powerhouse, stating that no official offer has been received and emphasizing that OpenAI’s structure prevents any individual from taking control.
Altman’s Strong Rejection of Musk’s Offer
In a letter to OpenAI employees on Monday, Sam Altman made it clear that the company has no intention of entertaining Elon Musk’s bid to take control of the organization. The CEO placed the terms “bid” and “deal” in quotation marks, signaling skepticism over Musk’s intentions. Altman stressed that OpenAI’s structure was designed to prevent any single entity from taking over, reinforcing the company’s commitment to its mission.
A Competitive Conflict
According to insiders familiar with the letter, Altman pointed out that Musk runs a competing AI company and that his actions do not align with OpenAI’s core values or goals. He further noted that OpenAI’s board has not received an official acquisition proposal from Musk or his partners. However, if such an offer were to be made, the board would reject it outright.
Musk’s $97.4 Billion Bid
The tech world was caught off guard when a group of investors, led by Musk, announced a massive $97.4 billion bid to acquire OpenAI’s assets. The bid was backed by Musk’s AI firm, xAI, along with Valor Equity Partners, a private equity company run by Antonio Gracias, one of Musk’s closest advisors. Gracias played a pivotal role in Musk’s 2022 acquisition of Twitter.
In a statement provided through his lawyer, Musk expressed his desire to return OpenAI to what he claims was its original mission of being an open-source, safety-focused organization. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated.
A History of Legal Battles
Musk has previously sued OpenAI multiple times, alleging that the company deviated from its original nonprofit commitments by transitioning into a for-profit entity. In response, OpenAI released internal emails suggesting that Musk was fully aware that a for-profit model would be necessary to advance artificial general intelligence. Reports also indicate that Musk had attempted to merge OpenAI with Tesla.
Challenges for OpenAI’s Board
The ongoing conflict between Musk and Altman places significant pressure on OpenAI’s board, chaired by Bret Taylor. Taylor previously led Twitter’s board during Musk’s acquisition of the social media platform. However, OpenAI’s structure presents a far more complex scenario. Unlike Twitter, which was a publicly traded company with a fiduciary responsibility to maximize shareholder value, OpenAI operates as a nonprofit with a for-profit subsidiary.
The board is currently overseeing OpenAI’s transition to a public benefit corporation, which requires it to establish a fair valuation for its assets. The company’s latest funding round values it at $157 billion, with ongoing negotiations involving SoftBank that could push its valuation to $300 billion.
Skepticism Surrounding Musk’s Offer
Legal experts highlight that Musk’s bid could set a minimum valuation benchmark for OpenAI’s assets. However, there is widespread doubt regarding whether Musk will follow through on his offer, particularly given his history with the Twitter acquisition, where he initially attempted to back out before being forced to proceed.
Altman has reportedly expressed skepticism internally, suggesting that Musk is known for overplaying his hand. In a recent interview, Altman stated, “Elon tries all sorts of things for a long time. I think he’s probably just trying to slow us down.”
Public Reactions
The tension between Altman and Musk reached new heights on social media. Altman took to X (formerly Twitter) to quip, “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk’s response was a single word: “Swindler.”
The Future of OpenAI
As OpenAI continues to evolve, its leadership remains steadfast in protecting the company’s independence. The ongoing disputes with Musk highlight the broader challenges facing AI organizations as they navigate governance, funding, and ethical concerns in a rapidly advancing industry. Meanwhile, other companies are also making strides in AI-driven infrastructure, such as Cisco’s AI-optimized networking solutions, which aim to enhance efficiency for service providers.
While Musk’s bid has certainly sparked widespread discussion, OpenAI’s leadership remains firm in its commitment to its founding principles. The coming months will reveal whether Musk continues his pursuit or shifts his focus elsewhere.
