OpenAI Board Denies Receiving Formal Bid from Elon Musk

A dispute has emerged over whether OpenAI’s board has received a formal acquisition bid from a consortium led by Elon Musk, adding another layer of uncertainty to the billionaire’s high-profile attempt to take over the nonprofit controlling ChatGPT’s creator. According to Reuters, despite Musk’s legal team asserting that the bid was sent, OpenAI maintains that its board has not formally received it.

The situation follows Musk’s public announcement of a $97.4 billion offer to acquire OpenAI’s nonprofit arm. However, the board remains unaware of any official proposal, a source familiar with the matter told Reuters on Tuesday. This discrepancy has fueled speculation about the handling of the bid and its reception within the organization.

Marc Toberoff, a lawyer representing Musk, stated to Reuters that he had emailed the offer on Monday to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz. The law firm has not yet responded to requests for comment. Toberoff described the bid as a “detailed four-page Letter of Intent” outlining the acquisition terms, signed by Musk and other investors, and addressed to OpenAI’s board.

Related: Elon Musk Leads $97.4 Billion Bid to Take Control of OpenAI

“Whether Sam Altman chose to provide or withhold this from OpenAI’s other Board members is outside of our control,” Toberoff told Reuters, referring to OpenAI’s CEO. The remark hints at possible internal disagreements over the bid’s communication within the company.

Despite the offer, Altman dismissed the idea of a sale, telling Reuters on Tuesday that OpenAI’s nonprofit entity is not available for purchase. “I have nothing to say. I mean, it’s ridiculous,” Altman stated during an AI summit in Paris. “The company is not for sale. It’s another one of his tactics to try to mess with us,” he added, referring to Musk’s actions.

Internally, Altman reassured OpenAI employees that while the board had yet to formally review the bid, it intended to reject it in alignment with the company’s mission, according to an internal message seen by Reuters.

Musk, who co-founded OpenAI with Altman in 2015, parted ways with the company due to disagreements over its direction and funding strategies. Since then, he has launched a competing AI venture, xAI, in 2023. His latest attempt to regain control of OpenAI comes as the organization navigates a complex transition toward a for-profit model, an effort that involves raising $40 billion to support its AI advancements.

Source: Reuters