On Friday, OpenAI officially turned down a staggering $97.4 billion (approximately Rs. 8,45,768 crore) bid from a consortium led by billionaire Elon Musk. The organization stated that it is not up for sale and that any future offers would be considered insincere.
This unsolicited bid represents Musk’s ongoing efforts to thwart the startup, which he co-founded with CEO Sam Altman but subsequently exited. Musk has been vocal about his desire to prevent OpenAI from transitioning into a for-profit entity as it seeks to secure more funding and maintain its competitive edge in the realm of Artificial Intelligence (AI).
“OpenAI is not for sale, and the board has unanimously dismissed Mr. Musk’s latest attempt to disrupt its competition. Any reorganization of OpenAI will enhance our nonprofit framework and our mission to ensure that AGI benefits all of humanity,” the company announced on X, referencing statements made by OpenAI Chairman Bret Taylor.
In response, Musk’s attorney, Marc Toberoff, alleged that OpenAI is effectively offering control of the for-profit arm for sale, suggesting that the move will primarily benefit certain board members rather than fulfilling charitable goals.
Late last December, OpenAI revealed intentions to restructure, planning to establish a public benefit corporation that would facilitate raising additional capital and alleviate the constraints imposed by its current nonprofit parent.
Earlier this week, Altman dismissed the consortium’s offer with a simple “no thank you” on X, which prompted Musk to label him a “swindler.” On Tuesday, Altman reiterated to Axios that OpenAI was not for sale.
Musk’s legal representatives indicated in a court filing that the consortium, which includes Musk’s AI enterprise xAI, would retract its offer for OpenAI’s nonprofit division if the organization abandons its plans for a for-profit model.
“Two days ago, you filed a pleading in court that introduced new material conditions to your proposal. Consequently, it is clear that your clients’ much-publicized ‘bid’ is not, in fact, a bid at all,” the OpenAI board stated, as outlined in a letter signed by company lawyer William Savitt and sent to Toberoff on Friday.
The consortium consists of other notable investors, including Valor Equity Partners, Baron Capital, and entertainment mogul Ari Emanuel.
The ongoing tensions between Altman and Musk have been well-documented over the years.
Since Musk’s departure in 2019, OpenAI has developed a for-profit branch that has attracted billions in funding, leading Musk to accuse the organization of deviating from its foundational mission in favor of profitability over public benefit.
In August of last year, Musk filed a lawsuit against Altman, OpenAI, and its primary investor, Microsoft, alleging breach of contract.
Moreover, Musk has sought a preliminary injunction from a federal court to prevent OpenAI from adopting a for-profit structure.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
