Altman: Musk's Bid 'Probably Just Trying to Slow Us Down'

PARIS — OpenAI CEO Sam Altman has dismissed Elon Musk's $97.4 billion takeover bid for the nonprofit entity controlling Altman's OpenAI, calling it "probably just an attempt to slow us down." Musk's unsolicited offer, announced Monday, has sparked a new wrinkle in the ongoing feud between the two tech titans.



Altman, speaking at an AI summit in Paris, was quick to reject Musk's bid. "We are not for sale," he said, adding that OpenAI has a mission to ensure that artificial general intelligence benefits all of humanity. Musk, an early investor and board member of OpenAI, left the company in 2018 after an internal power struggle left Altman in charge.

The sudden popularity of ChatGPT two years ago brought worldwide fame and new commercial possibilities to OpenAI, but it also heightened internal turmoil over the future of the organization and the advanced AI it was trying to develop. Its nonprofit board fired Altman in late 2023, but he returned days later with a new board.

Musk's bid comes as OpenAI is planning to shift its structure away from its nonprofit roots to a company beholden to shareholders. The offer could complicate OpenAI's fundraising efforts and potentially disrupt its planned transition. OpenAI's nonprofit board will need to consider Musk's offer and weigh the value of the company's assets, the value of controlling the company developing this technology, and the potential floor set by Musk's offer for the nonprofit's payment if it relinquishes control of its subsidiaries.



Altman and the OpenAI board must now decide whether to accept Musk's offer, reject it, or negotiate a counteroffer. Accepting the offer would mean giving up control of OpenAI, which could be seen as a violation of the company's founding mission and promise to the public. Rejecting the offer outright could lead to a legal battle with Musk, who has already sued OpenAI and is working to grow his own AI company, xAI, as a rival to OpenAI.

Negotiating a counteroffer or finding a middle ground could be a strategic move, but it may also lead to further complications and delays in OpenAI's planned transition. Altman and the board must also consider the potential backlash from investors, employees, and the public if they decide to accept Musk's offer or engage in lengthy negotiations, as it could be seen as prioritizing financial gain over OpenAI's mission and public purpose.

Musk's bid could also influence the competitive landscape in the AI industry, particularly in relation to OpenAI's rivals like xAI, Google, Meta, and Anthropic. Musk's attempt to consolidate power in the AI space by acquiring OpenAI could lead to increased scrutiny and regulatory pressure, as his dominance in the industry could raise antitrust concerns. Other competitors might feel compelled to increase their investment in AI or explore strategic partnerships to maintain their competitive edge.

In conclusion, Altman's dismissal of Musk's bid as "probably just an attempt to slow us down" highlights the ongoing feud between the two tech titans and the potential challenges and implications of Musk's unsolicited offer for OpenAI's future and the broader AI industry. As OpenAI's nonprofit board considers Musk's offer, they must weigh the strategic implications and potential backlash from investors, employees, and the public. The competitive landscape in the AI industry could also be influenced by Musk's bid, with other players feeling the need to increase their investment in AI or explore strategic partnerships to maintain their competitive edge.