Elon Musk’s attempt to purchase OpenAI, the company behind ChatGPT, has been firmly rejected by its board of directors.
“OpenAI is not available for sale, and the board has unanimously declined Mr. Musk’s latest effort to disrupt competition,” stated Bret Taylor, OpenAI’s board chair, on February 14. “Any future restructuring of OpenAI will be focused on strengthening our nonprofit mission to ensure AGI benefits all of humanity.”
On Monday, Musk submitted a $97.4 billion takeover bid to acquire OpenAI, backed by his AI startup, xAI, along with a coalition of investment firms. Musk stated that the goal of this acquisition was to reclaim control of OpenAI and realign it with its original mission—prioritizing public interest over profit-driven motives.
Musk’s legal team indicated in a court filing on February 12 that he would withdraw the bid if OpenAI remained a nonprofit organization.
“If OpenAI, Inc.’s Board is willing to uphold the charity’s mission and officially remove any indication that its assets are for sale by stopping its transition, Musk will withdraw the offer,” the filing stated. “Otherwise, the nonprofit must receive appropriate compensation based on a fair market value assessment.”
Taylor’s statement on Friday confirmed that any future restructuring of OpenAI would maintain its nonprofit status.
Responding to Musk’s bid, OpenAI CEO Sam Altman sarcastically remarked on social media, “no thank you but we will buy Twitter for $9.74 billion if you want,” anticipating the board’s official rejection.
Musk, who acquired Twitter for $44 billion in 2022 and later rebranded it as X, saw its value decline significantly. By October 2024, Fidelity estimated X’s worth at $9.4 billion—an 80 percent drop from its purchase price.
Musk and Altman, co-founders of OpenAI in 2015, have long clashed over the company’s strategic direction. Musk left OpenAI’s board in 2018 and later accused the organization of deviating from its nonprofit mission and aligning too closely with corporate interests, particularly Microsoft.
Musk, an early investor in OpenAI, contributed approximately $45 million before his departure. In 2023, he initiated legal action against OpenAI, first in California state court and later in federal court, alleging the company had abandoned its nonprofit research objectives in favor of commercial gains.
Last week, in the U.S. District Court for the Northern District of California, Judge Yvonne Gonzalez Rogers reviewed Musk’s request to prevent OpenAI from formally adopting a for-profit structure. While she questioned Musk’s assertion of irreparable harm, she also raised concerns about OpenAI’s relationship with Microsoft and allowed the lawsuit to proceed to a jury trial.
Musk’s attorney, Marc Toberoff, argued that if OpenAI intends to transition into a fully for-profit entity, it must provide fair compensation for its nonprofit foundations.
Altman’s legal team, however, dismissed Musk’s lawsuit as a strategic maneuver, accusing him of leveraging litigation to gain a competitive advantage after failing to seize control of the company.
“OpenAI remains committed to the safe and beneficial development of artificial general intelligence (AGI),” Altman’s attorneys stated in a court filing. “Musk once supported OpenAI’s mission but walked away when he couldn’t take control.”
Altman’s legal team contends that Musk’s lawsuit lacks both legal and factual merit and has requested its dismissal by the court.
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