OpenAI Rejects Elon Musk’s $97 Billion Buyout Offer

February 18, 2025: OpenAI’s board has unanimously rejected Elon Musk’s $97.4 billion buyout offer, citing concerns over control and strategic direction. The proposed acquisition, backed by a group of investors, aimed to take over OpenAI, the company behind ChatGPT, but the board dismissed the offer as an attempt to disrupt the company’s trajectory.

Reasons for Rejection

OpenAI’s leadership remains focused on maintaining independence and ensuring the responsible development of artificial intelligence. The board reportedly saw Musk’s bid as an effort to reshape the company’s direction, potentially prioritizing commercial interests over OpenAI’s existing AI safety commitments.

The decision also reflects long-standing tensions between Musk and OpenAI. After co-founding the company in 2015, Musk left in 2018, citing disagreements over its future. Since then, he has publicly criticized OpenAI, arguing that it has strayed from its mission and become overly influenced by corporate partnerships, particularly with Microsoft, which holds a significant stake.

Musk’s Next Move

Musk’s reaction to the rejection remains uncertain, but industry observers speculate that he may pursue alternative strategies to influence the AI space. His company, xAI, launched in 2023, is already developing AI models to compete directly with OpenAI. Some sources suggest he could increase legal pressure on OpenAI, as he has previously threatened lawsuits over its governance and partnerships.

Implications for OpenAI

The rejection highlights OpenAI’s commitment to remaining independent, though concerns persist over its reliance on private investment. Microsoft’s deep integration with OpenAI’s technology raises questions about whether the company can operate autonomously.

The decision also underscores the growing competition in AI, with Musk positioning xAI as a direct challenger. The AI industry continues to evolve rapidly, and OpenAI’s ability to navigate corporate pressures while advancing research will determine its long-term influence in the field.