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OpenAI's board has rejected the $97.4 billion takeover offer by a consortium of investors, led by Elon Musk. Earlier this week, Elon Musk's xAI, Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC, and Ari Emanuel, CEO of the Hollywood company Endeavor, submitted a proposal to OpenAI's board of directors to take control of OpenAI's non-profit arm.
OpenAI's board sent the following letter in response to the takeover offer:
"Earlier this week, you sent a letter on behalf of a consortium of corporate and financial entities offering to acquire all of the assets of OpenAI, Inc. ("OAI"), and to do so imminently, subject to numerous conditions. Two days ago, you filed a pleading in court adding new material conditions to the proposal. As a result of that filing, it is now apparent that your clients' much- publicized 'bid' is in fact not a bid at all.
In any event, your clients' proposal, even as first presented, is not in the best interests of OAI's mission and is rejected. The decision of the OAI board on this matter is unanimous."
Apart from OpenAI CEO Sam Altman, OpenAI Nonprofit's board currently includes independent directors Bret Taylor (Chair), Adam D’Angelo, Dr. Sue Desmond-Hellmann, Zico Kolter, Retired U.S. Army General Paul M. Nakasone, Adebayo Ogunlesi, Nicole Seligman, Fidji Simo, and Larry Summers.
OpenAI board chairman Bret Taylor gave the following statement in response to Elon Musk's takeover offer:
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity."
After Elon Musk and his investor group submitted their takeover bid on Monday, Elon Musk made a court filing saying that he would withdraw the bid if OpenAI's board decided to stop the for-profit conversion. This court filing by Musk made it easier for OpenAI's board to reject the takeover offer. It remains to be seen how Musk will respond to this decision.
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