Sun Feb 16 10:40:00 UTC 2025: ## OpenAI Rejects Elon Musk’s $97.4 Billion Bid
**San Francisco/Los Angeles –** OpenAI has decisively rejected a $97.4 billion takeover bid from Elon Musk and a group of unnamed investors, escalating the ongoing feud between Musk and OpenAI CEO Sam Altman. OpenAI chairman Bret Taylor released a statement confirming the board’s unanimous rejection, stating unequivocally that “OpenAI is not for sale.”
The bid, submitted earlier this week, targeted the assets of the nonprofit that controls OpenAI. It coincided with Altman’s plan to restructure OpenAI, shifting control to its investors, including Microsoft. Musk’s offer was deemed by OpenAI to be contrary to its mission of developing AI for the benefit of all humanity.
Marc Toberoff, the lawyer representing Musk and the investors, disputed OpenAI’s claims, alleging that the board is engaged in self-dealing by effectively selling the assets to themselves at a significantly lower price. He accused the board of failing to fulfill its fiduciary duties by not seriously considering the offer. Toberoff argued that the rejection benefits the board members rather than the intended charitable beneficiaries.
This rejection marks a significant escalation in the conflict between Musk, who co-founded OpenAI but later left the organization, and its current leadership. Musk is concurrently raising funds for his own AI startup, xAI. The future of OpenAI and its relationship with Musk remain uncertain in the wake of this substantial and publicly rejected offer.
First Piper 