Elon Musk's OpenAI Bid Rejected by Board; Musk Accuses Company of Departing from Mission
Tesla CEO Elon Musk's pursuit of OpenAI has hit a roadblock after the non-profit organization's board unanimously rejected his $97.4 billion offer.
OpenAI, co-founded by Sam Altman, has expressed its commitment to remaining a non-profit entity focused on developing AGI for the benefit of humanity.
Musk, an early investor in OpenAI, filed a lawsuit last year alleging the organization had deviated from its mission. He also leads xAI, an AI startup that competes with OpenAI.
Despite Musk's consortium's offer, OpenAI's board maintained its stance. Marc Toberoff, representing the investors, urged the organization to prioritize the charity's mission and preserve its control over transformative technology.
Musk has vowed to ensure OpenAI's return to its original values and open-source principles. Altman responded with a sarcastic offer to purchase Twitter for $9.74 billion.
In a court filing, Toberoff suggested Musk's withdrawal of his bid if OpenAI's board is willing to recommit to its mission and halt its conversion to for-profit status.
The consortium bidding on OpenAI includes xAI Corp., Baron Capital Group Inc., Valor Management LLC, and Emanuel Capital Management LLC, led by Endeavor CEO Ari Emanuel.
Toberoff has criticized the board's decision as self-serving, benefiting board members and executives rather than the charity. He questions how this aligns with OpenAI's mission to serve humanity.