OpenAI board unanimously rejects Musk-led group’s $97.4bn supply, says firm ‘shouldn’t be on the market’ – Firstpost

OpenAI’s board on Friday rejected a whopping $97.4 billion from a consortium led by Tesla CEO Elon Musk, eying to purchase ChatGPT. The board formally refused to just accept the supply and made it clear that the startup shouldn’t be on the market. The transfer was seen as Musk’s try to dam the corporate from changing into a “for-profit” agency because it appears to be like to safe extra capital and keep forward within the AI race.

Curiously, the SpaceX CEO co-founded the agency with CEO Sam Altman however later left the corporate. “OpenAI shouldn’t be on the market, and the board has unanimously rejected Mr Musk’s newest try to disrupt his competitors. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to make sure AGI advantages all of humanity,” OpenAI mentioned on X, quoting its chair Bret Taylor, on behalf of its board.

The remarks from the board got here days after Altman advised Axios that OpenAI was not on the market. He rebuffed the supply on Monday with a “no thanks” on X, prompting Musk to retort: “Swindler.” Whereas pushing to purchase the entity, the consortium led by Musk maintained that it might withdraw its bid for OpenAI’s non-profit arm if it drops plans to change into a for-profit entity.

Musk vs Altman

The consortium laid out the aforementioned situations in a courtroom submitting summited by the billionaire’s lawyer, Reuters reported. “Two days in the past, you filed a pleading in courtroom including new materials situations to the proposal. On account of that submitting, it’s now obvious that your shoppers’ a lot publicized ‘bid’ is in reality not a bid in any respect,” the OpenAI board mentioned, in keeping with a letter signed by William Savitt, a lawyer representing the corporate, despatched to Musk’s lawyer Marc Toberoff on Friday.

You will need to word that the opposite traders within the consortium embody Valor Fairness Companions, Baron Capital and Hollywood energy dealer Ari Emanuel. Altman and Musk have been at loggerheads for years.

After Musk’s exit in 2019, OpenAI created a for-profit arm that has drawn billions of {dollars} in funding, sparking allegations from Musk that the startup breached its unique mission by placing revenue forward of the bigger public good.

The billionaire ultimately sued Altman, OpenAI and its largest backer Microsoft in August final 12 months, alleging a breach of contract. In November final 12 months, Musk went on to ask a US district choose for a preliminary injunction to dam OpenAI from transferring to a for-profit construction.

With inputs from Reuters.