OpenAI’s board has not yet received a formal offer from a consortium led by Elon Musk to acquire the company, Reuters reports. However, Musk’s lawyer claims that such a document was sent to OpenAI’s outside counsel.
Conflicting Claims on the Offer
Musk has proposed buying the nonprofit that controls ChatGPT developer OpenAI for $97.4 billion. However, conflicting reports have emerged about the formal submission of the offer. According to a source familiar with the matter, OpenAI’s board has not received a formal offer, adding to the confusion surrounding this high-stakes attempt to gain control of one of the most influential AI companies.
Musk’s lawyer, Marc Toberoff, told Reuters that he emailed the proposal to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz on Monday. While the law firm declined to comment, Toberoff stated that the email contained a detailed four-page letter of intent signed by Musk and other investors, addressed to OpenAI’s board.
OpenAI’s Stance and Regulatory Review
OpenAI CEO Sam Altman told Reuters that the nonprofit controlling OpenAI is not for sale. In an internal email to employees, he stated that while the board had not formally reviewed the proposal, he intended to reject it based on OpenAI’s mission. Musk, who co-founded OpenAI as a nonprofit in 2015 alongside Altman, left before the company shifted its direction. In 2023, he launched a competing AI startup, xAI.
Currently, OpenAI is undergoing a reorganization, aiming to transition into a for-profit company and secure $40 billion in funding to support AI development. This process involves determining the valuation of the nonprofit that oversees OpenAI’s for-profit operations.
Meanwhile, Delaware Attorney General Kathleen Jennings, where OpenAI is incorporated, has pledged to review the company’s reorganization, adds NIX Solutions. She emphasized that OpenAI’s restructuring must align with its public-benefit mission rather than the commercial interests of its leadership or partners. Legal experts note that Musk’s proposal complicates OpenAI’s valuation, especially regarding its nonprofit assets. The challenge lies in accurately pricing these assets within the broader corporate restructuring.
The situation remains fluid, and we’ll keep you updated as more details emerge.