OpenAI Rejects Elon Musk's $97.4 Billion Acquisition Offer
OpenAI's board of directors has unanimously rejected an unsolicited $97.4 billion cash bid from a group of investors led by Elon Musk to acquire the nonprofit organization that controls the artificial intelligence (AI) company.
Rationale for Rejection
According to a statement by OpenAI Chairman Bret Taylor, the board unanimously believes that "OpenAI is not for sale" and that Musk's offer was "an attempt to disrupt his competition." The board's fiduciary duty is solely to fulfill OpenAI's mission of developing beneficial AGI.
Musk's Intent and Restructuring Plans
Musk, who co-founded OpenAI but later launched rival AI startup Neuralink, had expressed his desire to return OpenAI to its original focus on open-source, safety-conscious AI. OpenAI's planned restructuring into a for-profit business has been met with opposition from Musk, who has filed lawsuits against the company.
Potential Regulatory Implications
Legal experts suggest that regulators will scrutinize the distribution of OpenAI's assets if the nonprofit is compensated in the form of equity. Musk's offer may impact the valuation of OpenAI's nonprofit, potentially diluting the equity of current and future investors.
Ongoing Fundraising
Despite Musk's rejected offer, OpenAI is reportedly in discussions with SoftBank Group Corp. to raise a significant new funding round at a valuation of up to $300 billion. The company has a for-profit subsidiary that is currently governed by the nonprofit.