OpenAI CEO Sam Altman has firmly rejected a $97.4 billion takeover attempt by Elon Musk, characterizing the bid as a competitive maneuver rather than a genuine acquisition offer.
Speaking at the Paris AI summit, Altman suggested the move was designed to impede OpenAI’s progress rather than represent a serious purchase attempt.
“I think he is probably just trying to slow us down,” Altman told Bloomberg Television on Tuesday, noting Musk’s position as a competitor in the AI space. “I wish he would just compete by building a better product, but I think there’s been a lot of tactics, many lawsuits, all sorts of other crazy stuff, and now this.”
The takeover bid arrives at a crucial juncture for OpenAI, which is currently finalizing a major fundraising round that could value the company at $300 billion. The company is also navigating a complex transition from its nonprofit origins to a for-profit structure, a move that requires careful consideration of its charitable mission and investor interests — and is the subject of a lawsuit filed by Musk.
This latest development adds another layer to the complicated relationship between Musk and OpenAI. As co-founders in 2015, they established OpenAI as a nonprofit AI research laboratory. However, Musk later departed the organization and is currently pursuing legal action against it, claiming the company has strayed from its original mission. He has since launched his own AI venture, xAI, which competes directly with OpenAI.
The bid’s backing comes from various investors, including Valor Equity Partners, Baron Capital, and Ari Emanuel’s investment fund, according to Musk’s legal team. However, OpenAI board director Larry Summers indicated he hasn’t received any formal communication regarding the offer.
OpenAI’s unique organizational structure complicates any potential takeover. The nonprofit arm maintains control over the for-profit business, and the board, including chairman Bret Taylor, oversees this arrangement. Taylor’s previous interactions with Musk during the Twitter acquisition add another dimension to the situation.
Altman also addressed OpenAI staff in an internal communication, emphasizing that the company’s structure was specifically designed to prevent individual control and noting that no formal offer had been received.
During his Bloomberg Television appearance, Altman took a personal tone in his assessment of Musk’s motivations, suggesting that insecurity might be driving the billionaire’s actions. He also firmly stated the company’s position: “OpenAI is not for sale. The OpenAI mission is not for sale.”
The bid introduces additional complexity to OpenAI’s planned conversion to a for-profit entity, potentially establishing a baseline valuation that future deals would need to match or exceed. This development could impact both internal discussions about the company’s value and any regulatory reviews of its structural transformation.
While OpenAI explores various options for its future, Altman has made it clear that selling the AI operations isn’t among them. The company continues to focus on its ongoing fundraising efforts and organizational development, maintaining its commitment to its original mission while adapting to evolving market conditions.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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