The board of OpenAI has reportedly not received an official bid from a consortium led by Elon Musk, despite confirmation from the billionaire’s legal representative that an offer was submitted to the organization’s external legal counsel.
This development follows Musk’s announcement of a proposal to acquire the nonprofit entity overseeing ChatGPT’s parent company, OpenAI, for $97.4 billion (approximately ₹8,45,581 crore). As of now, both parties are at an impasse regarding the status of the formal bid.
A source familiar with the situation informed Reuters that OpenAI’s board has yet to view any formal proposal from Musk’s group, fueling further uncertainty around this unsolicited attempt to gain control of the leading AI organization.
Marc Toberoff, Musk’s attorney, stated to Reuters that he emailed a “detailed four-page Letter of Intent” to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz on Monday. The law firm has not yet commented on the matter.
Toberoff described the bid as being attached to the email and intended directly for the board, including signatures from Musk and various investors. He also mentioned, “Whether Sam Altman chose to provide or withhold this from OpenAI’s other board members is outside of our control,” referencing OpenAI’s CEO.
In response to inquiries at an AI summit in Paris, Altman dismissed the offer as “ridiculous,” asserting, “The company is not for sale. It’s another one of his tactics to try to mess with us.”
In a communication dispatched to OpenAI’s employees on Monday, Altman indicated that the board intends to reject the bid, citing the organization’s mission as the rationale behind their decision.
Musk co-founded OpenAI with Altman in 2015 as a nonprofit but departed before the company experienced significant growth, citing disagreements over its direction and funding strategies with Altman and other co-founders. He launched the competing AI venture, xAI, earlier this year.
Currently, Musk serves as the CEO of Tesla and heads the technology company X. He holds a significant political connection as a close ally of former President Donald Trump and leads the newly formed Department of Government Efficiency, which aims to streamline federal operations.
OpenAI is in the midst of a $40 billion (around ₹3,47,135 crore) fundraising campaign and is also working toward changing its structure from a nonprofit to a for-profit entity, claiming this transition is essential to secure funding for developing advanced AI technologies. This complex change involves establishing a value for OpenAI’s nonprofit control over the profit-driven sector.
Delaware Attorney General Kathy Jennings has stated she is reviewing OpenAI’s proposed structural changes to ensure that the organization maintains its commitment to its defined charitable purposes, rather than succumbing to commercial or private interests from its directors or partners.
Legal experts have indicated that Musk’s bid complicates the valuation of OpenAI, particularly concerning the nonprofit’s assets amid the corporate transition. It raises questions about the financial implications for the nonprofit if it relinquishes control of its assets.
Robert Weissman, co-president of Public Citizen, remarked, “This helps establish a price point for evaluating the value of the nonprofit assets. Regulators must ensure that if there is any transfer of assets to a profit-driven entity, the fair market value is achieved.”
© Thomson Reuters 2025
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