SAN FRANCISCO: OpenAI says its board of directors has unanimously rejected a $97.4 billion takeover bid by Elon Musk.
\n\u201cOpenAI is not for sale, and the board has unanimously rejected Mr. Musk\u2019s latest attempt to disrupt his competition,\u201d said a statement Friday from Bret Taylor, chair of OpenAI\u2019s board.
\nOpenAI attorney William Savitt in a letter to Musk\u2019s attorney Friday said the proposal \u201cis not in the best interests of OAI\u2019s mission and is rejected.\u201d
\nMusk, an early OpenAI investor, began a legal offensive against the ChatGPT maker nearly a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit.
\nOpenAI has increasingly sought to capitalize on the commercial success of generative AI. But the for-profit company is a subsidiary of a nonprofit entity that\u2019s bound to a mission \u2014 which Musk helped set \u2014 to safely build better-than-human AI for humanity\u2019s benefit. OpenAI is now seeking to more fully convert itself to a for-profit company, but would first have to buy out the nonprofit\u2019s assets.
\nThrowing a wrench in those plans, Musk and his own AI startup, xAI, and a group of investment firms announced a bid Monday to buy the nonprofit that controls OpenAI. Musk in a court filing Wednesday further detailed the proposal to acquire the nonprofit\u2019s controlling stake.
\nSavitt\u2019s letter Friday said that court filing added \u201cnew material conditions to the proposal. As a result of that filing, it is now apparent that your clients\u2019 much-publicized \u2018bid\u2019 is in fact not a bid at all.\u201d In any event, \u201ceven as first presented,\u201d the board has unanimously rejected it, Savitt said.
\nMusk has alleged in the lawsuit that OpenAI is violating the terms of his foundational contributions to the charity. Musk had invested about $45 million in the startup from its founding until 2018, his lawyer has said.
\nHe escalated the legal dispute late last year, adding new claims and defendants, including OpenAI\u2019s business partner Microsoft, and asking for a court order that would halt OpenAI\u2019s for-profit conversion. Musk also added xAI as a plaintiff, claiming that OpenAI was also unfairly stifling business competition. A judge is still considering Musk\u2019s request but expressed skepticism about some of his claims in a court hearing last week.<\/p>\n","protected":false},"excerpt":{"rendered":"
SAN FRANCISCO: OpenAI says its board of directors has unanimously rejected a $97.4 billion takeover bid by Elon Musk. \u201cOpenAI is not for sale, and the board has unanimously rejected Mr. Musk\u2019s latest attempt to disrupt his competition,\u201d said a statement Friday from Bret Taylor, chair of OpenAI\u2019s board. OpenAI attorney William Savitt in a …<\/p>\n","protected":false},"author":4,"featured_media":77124,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-77111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/77111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=77111"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/77111\/revisions"}],"predecessor-version":[{"id":77126,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/77111\/revisions\/77126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/77124"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=77111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=77111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=77111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}