Elon Musk launched a $97.4 billion bid to take management of OpenAI. The Wall Street Journal reported a bunch of traders led by Musk’s xAI submitted an unsolicited provide to the corporate’s board of administrators on Monday. The group needs to purchase the nonprofit that controls OpenAI’s for-profit arm.
When requested for remark, an OpenAI spokesperson pointed Engadget to an X post from CEO Sam Altman. “No thanks however we are going to purchase twitter for $9.74 billion if you would like,” Altman wrote on the social media platform Musk owns.
On Friday, OpenAI’s board of administrators formally rejected Musk’s bid. “OpenAI shouldn’t be on the market, and the board has unanimously rejected Mr. Musk’s newest try to disrupt his competitors,” the corporate stated in a response attributed to Bret Taylor, the chair of OpenAI’s board of administrators. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to make sure AGI advantages all of humanity.”
Taylor, by the way, was the chairman of Twitter’s board earlier than Musk purchased the social media platform for $44 billion in 2022.
“OpenAI shouldn’t be on the market, and the board has unanimously rejected Mr. Musk’s newest try to disrupt his competitors. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to make sure AGI advantages all of humanity.”
—Bret Taylor, Chair, on behalf of…
— OpenAI Newsroom (@OpenAINewsroom) February 14, 2025
“It’s time for OpenAI to return to the open-source, safety-focused pressure for good it as soon as was,” Musk stated in a press release his legal professional shared with The Journal. “We’ll guarantee that occurs.”
It is laborious to say how severe this bid from Musk is and what — if any — likelihood it has to succeed. OpenAI shouldn’t be a conventional firm, and the nonprofit structure Sam Altman and others on the firm need it to get away from might the truth is shield it from Musk’s provide. Have been OpenAI a for-profit firm with publicly traded shares Musk’s bid would doubtless set off what’s identified in company legislation as a Revlon second, the place, underneath sure circumstances, the corporate’s board of administrators can be compelled to promote to the very best bidder to maximise shareholder earnings.
Replace 02/14 4:34PM ET: Added response from OpenAI’s board of administrators.
This text initially appeared on Engadget at https://www.engadget.com/ai/openais-board-unanimously-rejects-elon-musks-974-billion-takeover-bid-215221683.html?src=rss
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