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OpenAI’s Board Unanimously Rejects Elon Musk’s Bid: What This Means for AI’s Future

In a significant development within the tech industry, OpenAI has decisively rejected billionaire Elon Musk’s recent offer to acquire its nonprofit governing body. This decision, announced on Friday, underscores OpenAI’s commitment to its mission of ensuring that artificial general intelligence (AGI) serves the interests of humanity.

OpenAI’s Response to Musk’s Offer

Bret Taylor, the chair of OpenAI’s board, stated, “OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.” This statement was shared via OpenAI’s official press account on X, emphasizing the board’s unified stance against the unsolicited bid.

Details of the Bid

Elon Musk, along with his AI venture, xAI, and a consortium of investors, proposed a staggering $97.4 billion offer to purchase the nonprofit. However, OpenAI’s leadership, including CEO Sam Altman, swiftly dismissed this proposal. Andy Nussbaum, legal counsel for OpenAI’s board, criticized Musk’s bid, stating that it “doesn’t set a value for [OpenAI’s] nonprofit” and reiterated that it is “not for sale.”

Background on OpenAI’s Structure

Initially founded as a nonprofit, OpenAI transitioned to a capped-profit model in 2019. The nonprofit entity remains the sole controlling shareholder of the capped-profit OpenAI corporation, which is responsible for upholding the nonprofit’s mission. Currently, OpenAI is undergoing a restructuring process to become a traditional for-profit, specifically a public benefit corporation.

Musk’s Legal Actions Against OpenAI

In a notable twist, Musk, who is a co-founder of OpenAI, has previously filed a lawsuit against the organization and CEO Sam Altman. This lawsuit alleges various offenses, including accusations of anticompetitive behavior and fraud.

Latest Developments in the Legal Battle

In a recent court filing, Musk’s legal team stated that he would withdraw his acquisition offer if OpenAI’s board agrees to maintain the charity’s mission and halts its transition to a for-profit model. Meanwhile, OpenAI’s attorneys labeled Musk’s attempt to gain control of the organization as “an improper bid to undermine a competitor.”

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Public Statements from Key Figures

The ongoing tension between Musk and Altman has led to public exchanges of criticism. Ari Emanuel, a supporter of Musk’s offer, labeled Altman as a “phony” in a recent podcast, claiming he was undermining the charity’s original goals. In contrast, Altman has described Musk’s acquisition bid as an effort to “slow [OpenAI] down,” suggesting it stems from Musk’s insecurities.

For further insights on the evolving dynamics of AI governance and technology, explore related articles on TechCrunch or The Verge.

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