OpenAI board unanimously rejects Elon Musk’s $97.4 billion proposal

OpenAI logo is seen in front of Elon Musk photo in this illustration taken March 11, 2024. (REUTERS/File Photo)
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Updated 15 February 2025
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OpenAI board unanimously rejects Elon Musk’s $97.4 billion proposal

  • Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker nearly a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit

 

SAN FRANCISCO: OpenAI says its board of directors has unanimously rejected a $97.4 billion takeover bid by Elon Musk.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” said a statement Friday from Bret Taylor, chair of OpenAI’s board.
OpenAI attorney William Savitt in a letter to Musk’s attorney Friday said the proposal “is not in the best interests of OAI’s mission and is rejected.”
Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker nearly a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit.
OpenAI has increasingly sought to capitalize on the commercial success of generative AI. But the for-profit company is a subsidiary of a nonprofit entity that’s bound to a mission — which Musk helped set — to safely build better-than-human AI for humanity’s benefit. OpenAI is now seeking to more fully convert itself to a for-profit company, but would first have to buy out the nonprofit’s assets.
Throwing a wrench in those plans, Musk and his own AI startup, xAI, and a group of investment firms announced a bid Monday to buy the nonprofit that controls OpenAI. Musk in a court filing Wednesday further detailed the proposal to acquire the nonprofit’s controlling stake.
Savitt’s letter Friday said that court filing added “new material conditions to the proposal. As a result of that filing, it is now apparent that your clients’ much-publicized ‘bid’ is in fact not a bid at all.” In any event, “even as first presented,” the board has unanimously rejected it, Savitt said.
Musk has alleged in the lawsuit that OpenAI is violating the terms of his foundational contributions to the charity. Musk had invested about $45 million in the startup from its founding until 2018, his lawyer has said.
He escalated the legal dispute late last year, adding new claims and defendants, including OpenAI’s business partner Microsoft, and asking for a court order that would halt OpenAI’s for-profit conversion. Musk also added xAI as a plaintiff, claiming that OpenAI was also unfairly stifling business competition. A judge is still considering Musk’s request but expressed skepticism about some of his claims in a court hearing last week.
 


Senate to question military leaders on Trump’s National Guard deployments

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Senate to question military leaders on Trump’s National Guard deployments

  • Hearing expected to feature tough questioning for Pentagon leaders over the legality of the deployments
  • National Guard deployments in some places were done over the objections of mayors and governors
WASHINGTON: Senators for the first time are poised to question military leaders over President Donald Trump’s use of the National Guard in American cities, an extraordinary move that has prompted legal challenges as well as questions about states’ rights and the use of the military on US soil.
The hearing Thursday before the Senate Armed Services Committee is expected to feature tough questioning for Pentagon leaders over the legality of the deployments, which in some places were done over the objections of mayors and governors.
The hearing will bring the highest level of scrutiny to Trump’s use of the National Guard outside of a courtroom since the deployments began and comes a day after the president faced another legal setback over his muscular use of troops in larger federal operations.
Trump has justified the use of the military in American cities by saying the National Guard is needed to support federal law enforcement, protect federal facilities and combat crime.
Democratic Sen. Tammy Duckworth, D-Illinois, said she had threatened to hold up the annual defense bill if Republican leadership continued to block the hearing, which she said is long overdue.
“Donald Trump is illegally deploying our nation’s service members under misleading if not false pretexts,” Duckworth told The Associated Press.
Duckworth, a combat veteran who served in the Illinois National Guard, said domestic deployments have traditionally involved responding to major floods and tornadoes, not assisting immigration agents who are detaining people in aggressive raids.
Duckworth said she has questions for the military about how Trump’s deployments are affecting readiness, training and costs. She also wants to know if Guard members will have legal protections if an immigration agent wrongfully harms a civilian.
“I’m deeply concerned that our nation’s military is being put in jeopardy by these policies,” Duckworth said.
The hearing comes two weeks after two West Virginia National Guard members deployed to Washington were shot just blocks from the White House in what the city’s mayor described as a targeted attack. Spc. Sarah Beckstrom died a day after the Nov. 26 shooting, and her funeral took place Tuesday. Staff Sgt. Andrew Wolfe is still hospitalized in Washington.
Meanwhile, a federal judge in California on Wednesday ruled that the Trump administration must stop deploying the California National Guard in Los Angeles and return control of the troops to the state.
US District Judge Charles Breyer in San Francisco granted a preliminary injunction sought by California officials, but also put the decision on hold until Monday. The White House said it plans to appeal.
Trump called up more than 4,000 California National Guard troops in June without Gov. Gavin Newsom’s approval to further the Trump administration’s immigration enforcement efforts.
The move was the first time in decades that a state’s National Guard was activated without a request from its governor and marked a significant escalation in the administration’s efforts to carry out its mass deportation policy. The troops were stationed outside a federal detention center in downtown Los Angeles where protesters gathered and later sent on the streets to protect immigration officers as they made arrests.
The number had dropped to several hundred by late October. The 100 or so California troops that remain in Los Angeles are guarding federal buildings or staying at a nearby base and are not on the streets with immigration enforcement officers, according to US Northern Command.
Trump also had announced National Guard members would be sent to Washington, D.C., Illinois, Oregon, Louisiana and Tennessee. Other judges have blocked or limited the deployment of troops to Portland, Oregon, and Chicago, while Guard members have not yet been sent to New Orleans.