• Sam Altman, the CEO of OpenAI, has rejected Elon Musk’s unsolicited bid of $97.4 billion.
• At an AI summit in Paris, Altman emphasized that OpenAI’s mission and essence are “not for sale.”
• Musk, a co-founder of OpenAI, has consistently criticized its shift to a profit-driven model.

In response to an unexpected $97.4 billion takeover offer from a group led by Elon Musk, Sam Altman has reaffirmed that OpenAI is “not for sale.”

During a media engagement at an AI conference in Paris, Altman reiterated this position, stating to Sky News, “The company is not for sale, and neither is our mission.”

When questioned about OpenAI’s ability to withstand Musk’s acquisition proposal, Altman indicated, “The board will determine the appropriate course of action.”

In an interview with Axios at the same summit, Altman remarked, “Elon has sought ways to gain control of OpenAI for quite some time, so this is just the latest episode.”

This exchange follows recent discussions on X between Altman and Musk regarding the proposed bid for the organization that developed ChatGPT.

Musk’s investment group, which includes his AI firm X.AI, submitted this offer to OpenAI’s board on Monday. A lawyer for the group, Marc Toberoff, confirmed the details, stating the proposal encompassed all of OpenAI, Inc.’s assets.

Musk stated in the announcement: “At x.AI, we uphold the principles originally promised to OpenAI. We’ve made Grok open source and honor the rights of content creators. It’s time for OpenAI to revert to its roots as an open-source, safety-oriented entity. We are committed to making that transition.”

In October, OpenAI was valued at $157 billion during a funding round that raised $6.6 billion. Reports in January suggested that SoftBank, a major investment firm, was considering a significant investment that would bring OpenAI’s valuation up to around $300 billion.

The group backing the bid, initially reported by The Wall Street Journal, includes notable firms such as Baron Capital Group, Inc., Valor Management LLC, Atreides Management, LP, Vy Fund III, L.P., Emanuel Capital Management, LLC, and Eight Partners VC, LLC.

The Journal detailed that the investor group aims to acquire the nonprofit aspect of OpenAI, which governs the organization. While Altman seeks to shift the startup into a for-profit model, this requires compensating the charitable arm for its holdings—a process complicated by the need to agree on asset valuation.

The Musk-led investor group indicated in their statement that their offer is structured to ensure that the charitable wing’s assets are valued fairly and compensated appropriately before any shift to a for-profit framework. “Considering the board’s current intentions, they seem willing to relinquish majority control over OpenAI’s entire for-profit division in exchange for a minority stake in a new, merged for-profit entity. Who would make such a deal?” questioned Toberoff, the spokesperson for the investors.

He added, “If the board decides to surrender OpenAI, Inc.’s assets, it is crucial for the public that OpenAI, Inc. receives fair market compensation—something that can’t be determined by insiders at the negotiating table.”

Shortly after news of the bid became public, Altman seemingly responded with a post on X, quipping, “No thank you, but we will buy Twitter for $9.74 billion if you’re interested.”

Musk retorted, “Swindler.”

In another post on X, Musk referred to Altman as a “scam.”

OpenAI representatives have not commented on inquiries from Business Insider regarding the situation.

Co-founders Altman and Musk established OpenAI as a nonprofit in 2015, though Musk departed the organization in 2018 and has since criticized both it and Altman publicly, particularly regarding the nonprofit’s shift to a for-profit structure.

This significant change, announced by OpenAI last September, aimed to release the company from the governance of its nonprofit board, with OpenAI asserting that this transition would attract increased funding and contribute to its sustainability as an enterprise.

It remains uncertain how Musk’s takeover offer would affect this structural modification, especially given his vocal opposition to OpenAI’s shift to becoming a for-profit entity.

In March 2024, Musk initiated legal action against Altman and OpenAI, alleging that the organization had abandoned its foundational principles, though he retracted the lawsuit months later. In August 2024, he filed another suit against Altman and OpenAI, claiming they had “manipulated” him into co-founding the organization as a nonprofit.

OpenAI has categorically denied Musk’s allegations. In response to the critiques last year, OpenAI released emails in March 2024 purportedly demonstrating Musk’s prior interest in transitioning the company to a for-profit model and his desire to merge it with Tesla.