OpenAI board rejects Elon Musk’s $97.4bn offer amid for-profit controversy

OpenAI has rejected a $97.4 billion bid from a consortium led by Elon Musk, stating that the company is not for sale and that any future bid would be disingenuous.

Musk, a co-founder of OpenAI who later departed, contradicts its transition to a for-profit model and has spoken out about its direction under CEO Sam Altman. 

OpenAI Chairman Bret Taylor reiterated the board’s broader efforts to its nonprofit mission, and stated: "Any potential reorganisation will strengthen our nonprofit and ensure AGI benefits all of humanity."

Musk's lawyer Marc Toberoff accused ChatGPT manufacturer of prioritising board members’ financial interests over its main charitable objective. 

In December 2024, OpenAI revealed plans to restructure into a public benefit corporation to get more investment and remove restrictions imposed by its nonprofit parent. Altman dismissed Musk’s bid, responding with a “no thank you” on X (formerly Twitter). In response, Musk replied, “swindler."

Later, Musk’s lawyers filed a court motion and stated that his consortium, such as xAI, Valor Equity Partners, Baron Capital, and Ari Emanuel — would withdraw the bid if the company remained a non-profit entity. 

In response, OpenAI’s legal team called Musk’s offer "not a bid at all", citing additional conditions Musk launched in court filings. 

Musk and Altman got into an intensifying conflict after Musk’s 2019 departure from the company, following which ChatGPT manufacturer created a for-profit arm attracting billions in funding. Musk has since accused and sued OpenAI of betraying its main objective and an alleged contract breach.