Elon Musk's ambitious $97.4 billion takeover bid for OpenAI has faced a decisive setback as the company's board of directors has unanimously rejected the proposal. An early investor in OpenAI, Musk's involvement with the organization has taken a confrontational turn due to ongoing legal disputes. He invested approximately $45 million in the company from its inception until 2018. The conflict between Musk and OpenAI began nearly a year ago when Musk initiated a lawsuit alleging a breach of contract, claiming that OpenAI had deviated from its founding nonprofit aims.
The board's rejection of Musk's proposal was firm and unequivocal.
"OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition." – Bret Taylor
OpenAI's attorney, William Savitt, echoed this sentiment by stating that the proposal
"is not in the best interests of OAI’s mission and is rejected." – William Savitt
Musk's legal battle with OpenAI intensified as he added new claims and defendants to his lawsuit, including Microsoft, a business partner of OpenAI. He is seeking a court order to block OpenAI's plans to transition into a for-profit entity. While a judge is still deliberating on Musk's request, there is noted skepticism regarding some of his claims.
In response to the legal maneuvers, Musk's lawyer indicated that the takeover bid included "new material conditions" compared to the original offer. Meanwhile, OpenAI maintained its stance through Savitt's firm rejection of Musk's proposal as detrimental to the company’s mission.
Musk's accusations extend beyond the legal arena, as he contends that OpenAI is stifling business competition. This claim is underscored by the involvement of his own AI startup, xAI, in a bid to acquire the nonprofit that exercises control over OpenAI.
