OpenAI Rejects $97.4 Billion Takeover Bid From Elon Musk Consortium

OpenAI has firmly rejected a £97.4 billion ($97.4 billion) takeover bid from a consortium led by Tesla chief executive Elon Musk, declaring the ChatGPT creator is not seeking new ownership. The unsolicited offer marks Musk’s latest attempt to influence the direction of the artificial intelligence startup he co-founded but subsequently departed.

The board’s unanimous rejection was announced by Chairman Bret Taylor, who emphasised OpenAI’s commitment to its non-profit mission of developing artificial general intelligence (AGI) for the benefit of humanity. The move highlights the growing tension between Musk and OpenAI’s current leadership, particularly CEO Sam Altman.

The bid significantly undervalued OpenAI, coming in at just over half of its £157 billion valuation established during its October 2024 funding round. Market specialists indicate the company’s current worth could be approaching £300 billion, with ongoing discussions for additional funding at this elevated valuation.

The rift between Musk and OpenAI deepened following his 2019 departure, as the organisation established a for-profit division that has attracted substantial investment. Musk has consistently criticised this strategic shift, claiming it betrays OpenAI’s original philanthropic objectives.

Wedbush Securities analyst Dan Ives characterised the bid as “more noise than a real competitive bid,” whilst suggesting Musk might return with an enhanced offer or pursue legal avenues to impede OpenAI’s current trajectory. The development adds another chapter to the increasingly complex relationship between two of technology’s most influential figures.

The rejection comes as OpenAI continues to dominate the AI sector, with its ChatGPT platform maintaining significant market leadership despite growing competition from Musk’s own AI venture, xAI, established in 2023