Particle.news
Download on the App Store
33 ARTICLES
·
3mo ago

Elon Musk's $97 Billion Bid for OpenAI Rejected by Board

Musk's offer challenges OpenAI's nonprofit-to-for-profit transition, raising questions about valuation and motives.

FILE - The OpenAI logo appears on a mobile phone in front of a computer screen with random binary data, March 9, 2023, in Boston. (AP Photo/Michael Dwyer, File)
Left, xAI's Elon Musk delivers remarks as he join U.S. President Donald Trump during an executive order signing in the Oval Office at the White House on February 11, 2025 in Washington, DC. Right, OpenAI CEO Sam Altman speaks at a panel discussion on potentials, perspectives and challenges in the age of Artificial Intelligence (AI) at the Technical University (TU) in Berlin on February 7, 2025.
OpenAI's board has rejected a $97 billion purchase offer by a group of investors led by billionaire Elon Musk.

Overview

  • Elon Musk submitted a $97 billion bid to acquire OpenAI's nonprofit entity, which was unanimously rejected by the board.
  • Musk claims his bid aims to restore OpenAI's focus on open-source AI and safety, but critics suggest it may be a disruptive tactic to slow a competitor.
  • The timing of Musk's bid complicates OpenAI's plans to transition to a for-profit model, with reports suggesting a $40 billion valuation for the nonprofit's assets.
  • Musk's offer raises concerns about whether OpenAI's nonprofit board is fulfilling its fiduciary duty to secure fair market value for its assets.
  • Legal and public disputes between Musk and OpenAI leadership, including CEO Sam Altman, have intensified, with ongoing litigation over OpenAI's corporate restructuring.