On Friday, OpenAI’s board chairman said for $97.4 billion, it has collectively rejected an Elon Musk-led offer to buy the hot artificial intelligence company.
Bret Taylor, chairman of the board, in a statement that was posted through the company on Mask-owner X, formally Twitter, said, “OpenAI is not for sale, and the board has unanimously rejected Musk’s latest effort to disrupt his competition”.
Also, he said, “Any potential restructuring of OpenAI will strengthen our nonprofit. Also, it’s a target to ensure AGI (artificial general intelligence) benefits all of humanity”.
On Wednesday Musk filed court documents and said that if its board reverts the artificial intelligence pioneer to a non-profit “charity” model, he would withdraw the offer to buy OpenAI.
Because a non-profit with a money-making affiliate, OpenAI, recently operates a hybrid structure.
The transformation to a for-profit model, one that Altman regards as essential for the company’s development and that had aggravated ongoing worries with Musk.
Within the 11-person team, Musk and Altman founded OpenAI in 2015, with the former offering initial funding of $45 million.
Ultimately in 2023, after OpenAI kindled global fervor over the technology, Musk established his own artificial intelligence company, which is called xAI.
The enormous costs of designing, training, and deploying AI models have compelled OpenAI to search for a new corporate structure that would provide investors ownership and give more stable governance.
From California and Delaware authorities, the transition to a traditional for-profit company demands approval, which will analyze how the non-profit arm of OpenAI is necessary when it becomes a shareholder in the new company. Recently, investors chose a lower importance to maximize their share of the new companies.
Roughly $30 billion above the level in recent negotiations, Musk’s offer valuing the OpenAI non-profit at $97.4 billion, due to the information, seems designed to interrupt the company’s fundraising efforts.
Chris Lehane, OpenAI’s Chief Global Affairs Officer, has said, Musk’s proposal came from a competitor who has endeavored to keep up with the technology and compete with us in the marketplace”.
Source: The Daily Star
