Image credit: The Byteline

OpenAI has formally rejected a $97.4 billion bid from a consortium led by Elon Musk, stating that the ChatGPT maker is not for sale and dismissing the offer as an attempt to disrupt its operations.

"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 nonprofit and its mission to ensure AGI benefits all of humanity," OpenAI Chairman Bret Taylor said in a statement on X.

The move is Musk’s latest attempt to halt OpenAI’s transition into a for-profit firm, a shift he has strongly opposed since his departure from the company in 2019. OpenAI, which Musk co-founded alongside CEO Sam Altman, has since secured billions in funding and become a dominant force in AI.

A Heated Exchange Over OpenAI’s Future

Musk’s lawyer Marc Toberoff responded to the rejection, accusing OpenAI of putting control of its for-profit entity up for sale to benefit certain board members rather than serving its original nonprofit mission.

The rejection follows a public exchange between Musk and Altman, with the latter dismissing the bid with a simple "no thank you" post on X. Musk fired back, calling Altman a “swindler.”

According to Axios, Altman reiterated earlier this week that OpenAI is not for sale, reinforcing the board's stance.

Legal Battles and Strategic Maneuvering

Musk’s legal team escalated the dispute further by filing a court motion on Wednesday, stating that his consortium—including his AI startup xAI, Valor Equity Partners, Baron Capital, and Hollywood power broker Ari Emanuel—would withdraw its bid if OpenAI abandoned its plans to transition into a for-profit entity.

The OpenAI board, however, dismissed this as an empty proposal.

"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," the board wrote in a letter signed by OpenAI’s legal representative William Savitt.

A Long-Standing Feud Over OpenAI’s Direction

Musk and Altman have been at odds for years over OpenAI’s direction. Following Musk’s departure in 2019, the company created a for-profit arm that has attracted massive investments, including billions from Microsoft. Musk has since accused OpenAI of betraying its founding mission by prioritizing profit over public benefit.

In August last year, Musk sued Altman, OpenAI, and Microsoft for breach of contract, alleging they had strayed from OpenAI’s original nonprofit commitment. Then in November, he sought a federal injunction to prevent OpenAI from fully transitioning into a for-profit structure.

With OpenAI doubling down on its independence, Musk’s bid appears to have hit a dead end—though, given the billionaire’s history, the battle is far from over.

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