OpenAI Board Rejects Elon Musk’s $97.4 Billion Takeover Bid
OpenAI’s top leaders declined to accept Elon Musk’s $97.4 billion investment team though investors wanted to merge their operations. A group comprising Valor Equity Partners Baron Capital Ari Emanuel’s fund and Musk Valor Equity Partners made plans to restart OpenAI by buying its operations.
The board chairperson Bret Taylor affirmed that they denied the offer because it would diminish market competitiveness. OpenAI is currently engaging in talks with SoftBank Group Corp about a 300-billion-dollar investment deal.
OpenAI CEO Sam Altman disagreed with Musk because he saw the offer as an attempt to slow down OpenAI’s development. As OpenAI moves towards becoming a profit-focused entity it confronts fresh business hurdles in its current circumstances.
The takeover attempt makes experts consider better ways to assess nonprofit entity value. According to Robert Bartlett from Stanford Law School, OpenAI made a logical decision to reject Musk’s offer even though a large amount could affect how investors view its future asset value.
According to OpenAI they will maintain their standard business model to develop AI technology that helps humans benefit from its general capabilities. The business stays committed to its nonprofit status as it progresses forward.
