OpenAI CEO Sam Altman has firmly rejected Elon Musk’s recent $97.4 billion offer to take control of the leading AI company. This follows news of a bid backed by Musk and his AI company, xAI, presented to OpenAI’s board on Monday. While the board is obligated to review the offer, it’s unclear whether they’ll seriously consider what amounts to a hostile takeover.
Altman, speaking at the Paris AI Action Summit on Tuesday during a Bloomberg TV interview, downplayed the significance of Musk’s bid. He characterized it as the “latest episode” in Musk’s ongoing attempts to disrupt OpenAI’s progress, suggesting Musk’s primary goal is to “slow us down.”
OpenAI CEO Sam Altman standing on stage at a product event.
This latest move follows a pattern of actions by Musk targeting OpenAI. He previously co-signed an open letter urging a six-month pause on AI development beyond GPT-4, only to launch xAI roughly six months later. He also criticized OpenAI’s ambitious $500 billion Stargate Project, questioning its financial viability. Altman, referencing Musk’s infamous “funding secured” Tesla tweet, responded by emphasizing his focus on building tangible progress rather than making unsubstantiated claims.
OpenAI’s current structure involves a non-profit organization overseeing the for-profit subsidiary, OpenAI LP. This structure facilitated OpenAI’s growth from a research startup to an industry leader valued at approximately $100 billion. The company is now planning to restructure, placing the for-profit entity in control of the non-profit arm. This restructuring is the subject of an ongoing lawsuit filed by Elon Musk.
Musk’s attorney, Marc Toberoff, stated that the offer aims to restore OpenAI to its original vision as an “open-source, safety-focused force for good.” The proposed takeover would involve merging xAI with OpenAI, presumably with Musk replacing Altman as CEO.
Altman expressed his preference for competition based on product innovation rather than “tactics,” citing numerous lawsuits and other actions by Musk. He reiterated OpenAI’s commitment to continued progress despite these distractions.
When questioned about whether Musk’s actions stem from insecurity, Altman offered a pointed assessment of his rival, stating, “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. I do feel for him.” This underscores the escalating tension between the two figures and their respective AI ventures.
