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’ll purchase twitter for $9.74 billion if you’d like,” Altman wrote on the social media platform Musk owns.
On Friday, OpenAI’s board of administrators formally rejected Musk’s bid. “OpenAI isn’t on the market, and the board has unanimously rejected Mr. Musk’s newest try and disrupt his competitors,” the corporate mentioned 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 isn’t on the market, and the board has unanimously rejected Mr. Musk’s newest try and 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 power for good it as soon as was,” Musk mentioned in an announcement his lawyer shared with The Journal. “We’ll be sure that occurs.”
It is onerous to say how severe this bid from Musk is and what — if any — probability it has to succeed. OpenAI isn’t a conventional firm, and the nonprofit structure Sam Altman and others on the firm need it to get away from could in reality shield it from Musk’s provide. Had been OpenAI a for-profit firm with publicly traded shares Musk’s bid would seemingly set off what’s recognized 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 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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