Sam Altman Rejects $97.4 Billion Takeover Bid from Elon Musk

Paris, xweb.biz.id –  OpenAI CEO Sam Altman has decisively rejected a $97.4 billion takeover bid from rival Elon Musk, insisting that the organization is “not for sale” despite the unsolicited offer. The bid, announced on Monday, marks the latest chapter in an ongoing and increasingly bitter feud between the two tech titans, who co-founded OpenAI a decade ago with the aim of developing transformative AI technologies.

A Mission-Focused Organization

Speaking at an artificial intelligence summit in Paris on Tuesday, Altman emphasized OpenAI’s core mission, which is to build artificial general intelligence (AGI) in a way that benefits all of humanity. “We are not for sale,” Altman stated firmly, reinforcing OpenAI’s stance of remaining true to its nonprofit origins. “OpenAI has a mission, and we are here to ensure AGI benefits all of humanity.”

Since its founding in 2015, OpenAI has been committed to the responsible development of AGI, which aims to create AI systems more powerful and versatile than current models like ChatGPT. The organization’s stated goal is to ensure that AGI serves the public good and is not concentrated in the hands of a few entities.

The Longstanding Feud Between Musk and Altman

Musk, an early investor and board member of OpenAI, quit the organization in 2018 following an internal power struggle. Since then, his relationship with Altman has soured, and their public conflict has intensified over the years. Musk’s recent offer to take control of OpenAI comes as he seeks to expand his own AI venture, xAI, which is part of his broader business empire encompassing Tesla, SpaceX, and social media platform X.

Musk has criticized OpenAI’s shift toward a for-profit model, claiming that the company is deviating from its nonprofit roots. In response, Altman dismissed Musk’s move as an attempt to slow down OpenAI’s progress. “I think he’s probably just trying to slow us down. He obviously is a competitor,” Altman said in an interview on Tuesday.

Legal and Ethical Challenges of a Sale

OpenAI, which began as a nonprofit organization, faces a complicated legal and ethical dilemma regarding its future. Under its current nonprofit structure, the board is obligated to prioritize the organization’s mission over financial gain, which complicates Musk’s bid. OpenAI’s board, including Chair Bret Taylor, has echoed Altman’s stance, with Taylor declaring, “OpenAI is not for sale.”

This challenge is particularly significant due to OpenAI’s legally binding commitment to the public to ensure that AGI benefits humanity. As Jill Horwitz, a professor at UCLA Law, noted, “There is a legally binding purpose… a promise made to the public when OpenAI was formed, and that promise is legally enforceable.” The potential sale to Musk could be seen as a violation of this public trust, as it would shift control of a technology that was intended to serve the public good into private hands.

The Board’s Fiduciary Duty

The board of OpenAI has emphasized its responsibility to evaluate any strategic decisions based on whether they align with the nonprofit’s mission. According to Bret Taylor, the board’s job is “to evaluate every strategic decision of the organization through that one test: Does this actually further the mission of ensuring AGI benefits humanity?” Musk’s offer, he added, seemed to be more of a distraction than a legitimate path forward for the organization.

The legal complexities of a potential sale are further compounded by Musk’s history with takeovers. His $44 billion acquisition of Twitter in 2022 started with an unsolicited offer and led to a lengthy legal battle. However, taking control of OpenAI, with its stated mission and nonprofit status, presents a far more intricate challenge.

Musk’s Allies and the Fight Over Control

Musk’s bid is backed by several financial firms, including Baron Capital Group, Valor Management, Atreides Management, Vy Fund, and other entities linked to Musk’s allies. Musk’s legal team argues that if Altman and OpenAI’s current leadership are intent on becoming a fully for-profit corporation, it is vital that the organization be fairly compensated for relinquishing control of its groundbreaking technology.

Altman, however, has reassured employees that OpenAI’s structure ensures that no individual can take full control of the company. Despite Musk’s ongoing attempts to gain influence over the organization, Altman remains confident in the nonprofit model, stating, “We’ve set it up so that no one person can control OpenAI, and we will continue to prioritize our mission.”

What Happens Next?

For now, Altman’s rejection of Musk’s $97.4 billion takeover bid appears to have closed that chapter, but the future remains uncertain. OpenAI continues to face scrutiny over its transition from a nonprofit to a more commercially driven entity, and Musk’s legal challenges are far from over. As the court considers Musk’s request to block OpenAI’s shift to a for-profit model, the dispute over the future of AGI—and who controls it—remains unresolved.

For Altman and Musk, this is a personal and professional battle that will continue to shape the future of artificial intelligence. As Altman put it, “I feel for the guy. Probably his whole life is from a position of insecurity,” offering a glimpse into the complex dynamics driving their feud.

In the end, the fight over OpenAI is not just about money but about the direction of one of the most transformative technologies of our time—and whether it will be controlled by a select few or shaped for the benefit of all humanity.

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