OpenAI CEO Sam Altman has decisively rejected a $97.4 billion takeover bid orchestrated by Elon Musk, marking another chapter in their ongoing conflict over the future of the artificial intelligence startup. The announcement on Monday underscored the enduring tension between Altman and Musk, whose rivalry dates back to 2018 when Musk departed from OpenAI following a power struggle that left Altman at the helm. This latest bid highlights Musk's continued efforts to influence OpenAI, which has emerged as a leader in the burgeoning field of generative AI technology.
OpenAI was established in 2015 as a nonprofit organization with the ambitious goal of creating artificial general intelligence (AGI) that could surpass human intelligence while ensuring its benefits are accessible to all humanity. Musk, an early investor and board member, distanced himself from the company five years ago amid internal disagreements. Since then, he has pursued legal action against OpenAI, alleging it deviated from its foundational nonprofit mission aimed at the public good.
The nonprofit board of OpenAI dismissed Altman from his position in late 2023, only for him to return with a newly formed board shortly thereafter. Altman has characterized Musk's actions as those of a competitor eager to close the gap with OpenAI's advancements.
"We are an unusual organization and we have this mission of making AGI benefit all humanity. And we are here to do that." – Sam Altman
Musk's offer is part of a series of attempts to gain influence over OpenAI. Despite the nonprofit's 2020 redefined purpose to prevent any individual from seizing control, Musk's persistent bids and legal challenges suggest his intentions remain unchanged. His recent actions echo his $44 billion acquisition of Twitter in 2022, which likewise began with an unsolicited bid and subsequent legal confrontation.
The ongoing feud has raised questions about OpenAI's potential transition to a for-profit entity, a move that Musk's offer could further complicate. Legal proceedings continue to unfold as a judge considers whether Musk's arguments justify a jury trial while withholding judgment on his request to block OpenAI's for-profit conversion.
"I think he's probably just trying to slow us down. He obviously is a competitor," – Sam Altman
The nonprofit board must now assess whether Musk's proposal aligns with OpenAI's founding principles and is in the best interest of its mission. Altman remains firm in his belief that OpenAI's structure inherently prevents any single person from dominating the organization.
"Probably his whole life is from a position of insecurity. I feel for the guy," – Sam Altman
Jill Horwitz, a legal expert, emphasizes the binding nature of OpenAI's original promise as a nonprofit dedicated to public benefit.
"It is the promise that was made to the public when OpenAI, the nonprofit, was formed. That promise is legally enforceable." – Jill Horwitz
