OpenAI board declines Musk-led bid to purchase tech company

Musk, who was a co-founder of the AI company until he left in 2019, led a group of investors earlier this week in offering $97.4 billion for the organization, which is attempting to transition to a for-profit company.

By Misty Severi

Published: February 14, 2025 10:26pm

The OpenAI board of directors on Friday voted to reject Elon Musk's group's nearly $100 billion bid to purchase the company, declaring the company was not for sale.

Musk, who was a co-founder of the Artificial Intelligence company until he left in 2019, led a group of investors earlier this week in offering $97.4 billion for the organization, which is attempting to transition to a for-profit company.

OpenAI chairman Bret Taylor accused Musk in a post on X of trying to disrupt the company and its CEO Sam Altman. The pair have been feuding recently, after Musk repeatedly sued Altman for allegedly straying from the company's original mission to develop AI with a focus on transparency and safety.

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” Taylor wrote in the post. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity."

Altman has also voiced his opposition to the offer, stating that he could buy Musk's X for $97.4 billion.

An attorney for Musk and his allies of investors said he was not surprised they turned down the deal, but questioned whether it was a decision made in "good faith," which would fulfill the board's fiduciary duty, The Hill reported.

“This comes as no surprise, given that Altman and Board chair, Taylor, already rejected Musk’s $ 97.4 billion bid while stating they had not yet received it,” Marc Toberoff said in a statement. “But we are surprised to see the Board, which has strict fiduciary duties to carefully consider the bid in good faith on behalf of the charity, use the same kind of deflective double-talk Altman used in testifying to the Senate"

Musk's offer was supported by Valor Equity Partners, Vy Capital, Baron Capital, Atreides Management, and venture firm 8VC, which is led by Palantir co-founder Joe Lonsdale.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.