OpenAI Rejects Elon Musk's $97.4 Billion Buyout Offer

In a tense move, OpenAI has firmly rejected a $97.4 billion buyout offer from Elon Musk, emphasizing that "OpenAI is never for commercial purposes - and never will be." Official Announcement and Declaration from OpenAI In a letter to Elon Musk's legal team, OpenAI's lawyer, Mr. William Savitt, asserted that the proposal was not aligned with the organization's mission. 'The proposal, from the very first presentation, does not serve the best interests of OAI's mission and is rejected,' Mr. Savitt stated. This decision was made with the unanimous support of the entire board of directors. OpenAI Chairman Bret Taylor has also expressed a similar view in a press statement: "We have no intention to sell. Any restructuring of OpenAI will aim to strengthen the nonprofit mission and ensure that AGI benefits all of humanity." Rebellion Reaction From Elon Musk and Legal Team Not accepting this result, Elon Musk's legal team, led by Marc Toberoff, has announced that Musk's investor group has officially presented a real acquisition offer for OpenAI's non-profit unit. Toberoff argues that OpenAI has deviated from its original mission - becoming too focused on profit and straying from the principles of "open source" and safe research. "It's time for OpenAI to return to its image as a safe and open-source AI research lab as before," emphasized Toberoff. Meanwhile, OpenAI CEO Sam Altman did not hesitate to respond on the social network X (previously known as Twitter) with a sarcastic remark: “No, but if Elon wants, we will buy Twitter for 9.74 billion USD.” This statement quickly heated up the debate, as Elon Musk later called Altman a “fraudster” and even “Scam Altman.” The End of a Long-Term Relationship The conflict between Elon Musk and Sam Altman is not new. Elon Musk was a co-founder of OpenAI in 2015, along with Altman and many other technology leaders, with the goal of developing AI for the common good of humanity. However, it wasn't until 2018 that Musk left the board, believing that the company's progress did not meet expectations. In 2019, OpenAI transitioned from a nonprofit model to a "capped profit" model (capped profit), allowing the company to raise billions of dollars from investors. In particular, Microsoft has invested at least $10 billion, helping shape the future of the organization. Currently, OpenAI has become one of the leading forces in the field of artificial intelligence, with ChatGPT setting the standard for this industry. In addition, other investors like SoftBank are also actively negotiating, with information suggesting that SoftBank may complete a $40 billion investment, valuing OpenAI at up to $260 billion. Legal Developments and Expert Opinions In a court filing, Elon Musk made it clear that he would withdraw his offer to buy back if the OpenAI board agrees to prevent the transition to a for-profit model. "If the board of OpenAI, Inc. agrees to maintain the charitable mission and commit to removing signs of 'for sale' from the organization's assets, Musk will withdraw the offer. Otherwise, the organization must be compensated at the market value that an independent buyer is willing to pay," the document states. Mr. Toberoff also sent letters to the attorneys general of California and Delaware, calling for an auction to be held for OpenAI's non-profit unit. However, legal experts, such as Joel Fleming - a securities lawyer, asserted that the directors of non-profit organizations are not bound by rules similar to those in commercial enterprises. "In for-profit businesses, directors often do not bear legal responsibility when rejecting a buyout offer. In non-profit organizations, the goal is not to maximize shareholder profit, so the rejection does not create legal risk," Mr. Fleming remarked. Review Mission and Future Direction Elon Musk believes that OpenAI is gradually 'erasing' its original non-profit core, transforming from an open and safe research organization into a 'venture capital business' with profit goals. 'It's like setting up a charity organization to protect the Amazon rainforest, but then it turns into a logging company,' Musk compared, emphasizing that he had contributed $50 million to OpenAI in hopes of building a safe and open AI community. In this context, OpenAI continues to affirm its mission: to develop artificial intelligence to benefit all mankind, regardless of how organizational forms and business models may change. The board's decision shows their priority to maintain the organization's mission and core values, overcoming pressure from massive financial proposals.