OpenAI Board Rejects Elon Musk’s $97.4 Billion Offer, Reaffirms Non-Profit Commitment

Musk’s Bid to Acquire ChatGPT Maker Denied as OpenAI Maintains Its Stand Against Takeover

San Francisco, February 2025

In a dramatic development in the world of artificial intelligence, OpenAI's board has unanimously rejected Elon Musk's staggering $97.4 billion takeover bid, reaffirming that the company is not for sale. The decision marks yet another chapter in the ongoing battle between Musk and OpenAI CEO Sam Altman, as tensions rise over the future direction of the ChatGPT maker.

The rejection of Musk’s offer highlights the board’s commitment to OpenAI’s mission of ensuring that Artificial General Intelligence (AGI) benefits all of humanity, rather than becoming a tool for corporate profit. The move also solidifies OpenAI’s stance on remaining independent despite growing financial pressure and rising competition in the AI sector.

Musk’s Offer and OpenAI’s Response

On Friday, February 9, 2025, OpenAI issued a firm public statement, making it clear that Musk’s offer had been declined outright. Chairman Bret Taylor, speaking on behalf of OpenAI’s board, emphasized:

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition. Any potential reorganization of OpenAI will strengthen our non-profit and its mission to ensure AGI benefits all of humanity.”

The statement was widely shared on social media and reinforced OpenAI’s vision of remaining a mission-driven organization focused on AI ethics and accessibility.

Musk’s legal team, led by Marc Toberoff, has yet to formally respond to the rejection, but the billionaire's long-standing feud with Altman and OpenAI continues to make headlines.

The Battle Over OpenAI’s Future

Musk’s unsolicited bid was seen as his latest attempt to regain influence over the AI start-up he co-founded in 2015 but later departed from in 2019. Since then, OpenAI has transitioned into a hybrid non-profit/for-profit structure, allowing it to attract significant investment from Microsoft and other major backers.

Musk, however, has repeatedly criticized OpenAI, claiming it has strayed from its original non-profit mission by prioritizing commercial interests. The Tesla and SpaceX CEO has been vocal about his concerns that AI development should remain transparent and beneficial to humanity, rather than controlled by corporate interests.

In a recent court filing, Musk’s legal team argued that OpenAI’s transition towards a for-profit model should be blocked. His lawsuit, filed in August 2024, alleges that OpenAI violated its original agreement by shifting towards a corporate-driven approach, heavily backed by Microsoft’s funding.

Elon Musk’s Reaction and Social Media Clash

Following OpenAI’s rejection, Musk took to social media, responding to Altman’s casual dismissal of his bid with a simple but pointed reply:

"Swindler."

This direct attack on Altman underscores Musk’s frustration with OpenAI’s leadership, a company he once helped shape. The public exchange between Musk and Altman has only intensified in recent months, with Musk accusing OpenAI of prioritizing profits over ethics.

Musk’s AI venture, xAI, was also part of the consortium that attempted the buyout. Other investors in the bid included Valor Equity Partners, Baron Capital, and Hollywood mogul Ari Emanuel.

However, OpenAI’s rejection letter, signed by lawyer William Savitt, made it clear that Musk’s offer was not a genuine attempt at acquisition but rather a strategic move to challenge OpenAI’s corporate evolution.

“Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients' much-publicized 'bid' is in fact not a bid at all.”

This statement reflects OpenAI’s belief that Musk’s real objective was to hinder its for-profit transition rather than genuinely acquire the company.

What’s Next for OpenAI and the AI Industry?

With OpenAI standing firm in its rejection of Musk’s offer, the AI industry is now watching closely to see how this battle unfolds. The company remains focused on its future roadmap, including ongoing development in ChatGPT, AI research, and the race toward AGI.

Meanwhile, Musk’s xAI and other AI competitors are working on their own innovations to challenge OpenAI’s dominance. With Microsoft, Google, and other tech giants investing billions in AI research, the competition is only expected to intensify in the coming years.

Whether Musk will take further legal action or attempt another takeover bid remains uncertain. However, one thing is clear—OpenAI’s refusal to sell has solidified its position as one of the most influential and fiercely independent AI organizations in the world.