The battle over OpenAI’s future has reached a dramatic turning point. Elon Musk, once a co-founder and early investor in the AI powerhouse, has been trying to regain control, but OpenAI’s board just delivered a clear message: Not for sale. The board unanimously rejected Musk’s staggering $97.4 billion takeover bid, escalating an already heated legal and ideological dispute over AI’s direction.
How It All Started: Musk’s Relationship with OpenAI
In 2015, Elon Musk co-founded OpenAI as a nonprofit to ensure AI development would benefit humanity rather than be controlled by a few corporations. He invested $45 million but left the company in 2018, citing conflicts with Tesla’s AI projects. After Musk’s departure, OpenAI, under Sam Altman’s leadership, began shifting toward a for-profit model, arguing that it needed more funding to compete with giants like Google and Microsoft.
Altman’s plan wasn’t to sell OpenAI outright but to slowly restructure it into a profit-driven company while keeping nonprofit oversight. He did this by raising money with a capped-profit system—meaning investors could earn, but not endlessly. However, Musk’s surprise $97.4 billion offer changed everything. If OpenAI wants to move forward with its for-profit transition, it now has to prove why it shouldn’t accept Musk’s much larger market offer. This puts Altman in a tricky position: he must either justify the transition with a better reason or reject Musk’s money and stick to the nonprofit’s original vision.
Meanwhile, Musk claims OpenAI has abandoned its founding purpose and sued the company in early 2024, accusing it of prioritizing corporate profits over AI safety. His lawsuit also targets Microsoft, arguing that OpenAI’s deep partnership with the tech giant limits fair competition. Now, OpenAI faces both legal battles and an identity crisis—should it complete its for-profit shift, or does Musk’s bid prove it’s worth even more than Altman planned?
OpenAI’s Strong Rejection and Sam Altman’s Response
On Friday, OpenAI’s board chair Bret Taylor issued a firm response:
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.”
OpenAI’s legal team reinforced this stance, with attorney William Savitt stating in a letter that Musk’s proposal was “not in the best interests of OpenAI’s mission” and was therefore rejected.
In a recent Bloomberg interview, OpenAI CEO Sam Altman dismissed Musk’s bid as yet another attempt to slow OpenAI down.
“OpenAI is not for sale. The OpenAI mission is not for sale. Elon tries all sorts of things for a long time. This is this week’s episode.”
Altman directly called out Musk’s tactics, suggesting that the Tesla and SpaceX CEO is using legal and business maneuvers to hinder OpenAI’s progress rather than competing through innovation.
“He obviously is a competitor. He’s working hard and raised a lot of money for xAI, and they’re trying to compete with us from a technological perspective. I wish he would just compete by building a better product.”
When asked whether Musk’s actions stem from insecurity, Altman didn’t hold back, saying:
“Probably his whole life is from a position of insecurity. I feel for the guy. I don’t think he’s like a happy person.”
Despite Musk’s proximity to U.S. political leaders and his potential influence over AI policies, Altman remains focused on OpenAI’s work, saying:
“I try to just wake up and think about how we are going to make our technology better.”
Altman’s statements reflect OpenAI’s determination to continue its mission without Musk’s involvement, reinforcing the divide between the two AI powerhouses.
Musk’s Next Move: Lawsuits and a Rival AI Company
Despite the rejection, Musk is far from backing down. His AI startup xAI, along with a group of investors, made a bid to acquire the nonprofit entity that controls OpenAI, aiming to regain influence over the company’s decisions. However, OpenAI dismissed the move as legally and structurally flawed.
In addition to his ongoing lawsuit, Musk has been expanding xAI to compete directly with OpenAI, launching its Grok AI model on X (formerly Twitter) and promising advancements in artificial general intelligence (AGI). His legal team argues that OpenAI’s shift toward commercialization stifles fair competition and goes against its founding principles.
What’s Next for OpenAI and the AI Industry?
The rejection of Musk’s bid marks a pivotal moment in the AI industry. With OpenAI pushing forward with its for-profit transformation and Musk challenging its legitimacy, the AI race is intensifying between corporate giants and independent challengers. Whether Musk will escalate his legal battle, seek regulatory intervention, or focus entirely on building xAI as a true competitor remains to be seen.
One thing is certain: the fight for AI’s future has only just begun.
Prepared by Navruzakhon Burieva
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