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The battle between Elon Musk and OpenAI took another turn as the company’s board denied receiving any formal takeover bid from the billionaire. Musk announced a staggering $97.4 billion offer to acquire OpenAI, but the board maintains no such proposal has been formally submitted.
OpenAI’s CEO, Sam Altman, dismissed Musk’s move, calling it an attempt to create disruption. “The company is not for sale. It’s another one of his tactics to try to mess with us,” Altman stated. In a message to employees, he said the board planned to reject the bid based on OpenAI’s mission, even though they had not officially reviewed it.
Musk’s lawyer, Marc Toberoff, insisted that a detailed four-page Letter of Intent had been emailed to OpenAI’s legal representatives at Wachtell, Lipton, Rosen & Katz. The law firm has yet to confirm receiving the bid.
According to the reports, an OpenAI board member said the company had not even presented Musk's offer in a formal sense. This contradiction adds to the ongoing uncertainty surrounding Musk’s attempt to take control of OpenAI, with both sides accusing each other of lying.
Elon Musk co-founded OpenAI, alongside Sam Altman, in 2015 with an aim to promoting friendly AI for the betterment of mankind. However, Musk left OpenAI some time later because of disagreements regarding the degree of funding that should be used for OpenAI and its direction. OpenAI then subsequently adopted a for-profit model moderated by nonprofit control, with Musk founding their competitor xAI in 2023.
He is said to have filed a lawsuit against OpenAI, alleging that it has declined from fulfilling its mission. The legal documents accuse OpenAI of having changed its aims in pursuit of profit, which, according to the papers, would be against its founding purpose. On the other hand, OpenAI is attempting to raise $40 billion to continue the research and development of AI.
Currently, the Delaware attorney general, Kathy Jennings, is reviewing OpenAI's infrastructural amendments. Her office wished to ensure that the efforts of OpenAI's transition were aimed more at the interests of public benefit than at private commercial ones. Legal analysts argue that Musk's bid would further complicate OpenAI's valuation, especially when it comes to assessing its nonprofit assets in a sale.
Robert Weissman, co-president of Public Citizen, a consumer rights group, stated that if OpenAI tries to sell its assets, the regulators must make sure fair market value is paid.
The tug of war between Musk and OpenAI is far from over. With courtrooms, boardrooms, and public regulations all involved, the AI sector is witnessing one of its biggest showdowns. Musk stands with takeover instincts, while OpenAI is obstinate against any kind of takeover.
