Elon Musk has led a £78.3billion bid to take control of artificial intelligence company OpenAI, only to face immediate rejection from its chief executive.
The Tesla billionaire's consortium offered $97.4bn to buy the ChatGPT maker in a dramatic escalation of his ongoing dispute with the company he helped found.
OpenAI CEO Sam Altman swiftly dismissed the proposal on Musk's social media platform X, responding: "No thank you but we will buy twitter for $9.74 billion if you want."
Musk had purchased Twitter, now known as X, for $44bn in 2022.
Sam Altman clashed with Elon Mush over the takeover deal
Reuters
The consortium, which includes Musk's AI startup xAI and several investment firms, aims to revert OpenAI back to its original charitable mission as a non-profit research lab, according to Musk's lawyer Marc Toberoff.
The bid marks the latest development in an ongoing legal battle between Musk and the company he helped establish.
The group of investors backing the proposal includes Baron Capital Group, Valor Management, Atreides Management, Vy Fund, Emanuel Capital Management and Eight Partners VC.
OpenAI's leadership has taken a firm stance against the takeover attempt, with Altman telling staff that the board of directors plans to make clear it has no interest in Musk's "supposed bid."
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Elon Musk is the owner of TESLA and SpaceXPA
OpenAi CEO Sam Altman rejected Musk's bid
Reuters
The internal message, reported by the Information, underscores the company's determination to maintain its independence.
The rejection comes as OpenAI continues its transition towards a for-profit model, a move that has been at the centre of recent legal disputes with Musk.
Musk and Altman, who together established OpenAI in 2015, have been locked in a feud over the startup's direction since Musk resigned from its board in 2018.
As an early investor who contributed about $45m to the startup, Musk filed lawsuits against OpenAI in both California state and federal courts last year.
Last week, during a federal court hearing, Judge Yvonne Gonzalez Rogers called it a "stretch" for Musk to claim irreparable harm from OpenAI's for-profit transition.
The judge, however, raised concerns about OpenAI's relationship with Microsoft and indicated the case could proceed to trial next year.
Musk and Altman, who together established OpenAI in 2015, have been locked in a feud over the startup's direction since Musk resigned from its board in 2018
Reuters
Musk's lawyer Toberoff emphasised the importance of fair compensation if OpenAI proceeds with its for-profit transition.
"If Altman and OpenAI's current board are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated," he said.
Toberoff has also written to the attorneys general of California and Delaware, requesting information about competitive bidding processes.
The letter questioned how the public's beneficial interest would be protected in determining fair market value for OpenAI's charitable assets.
