Sam Altman rejects Elon Musk’s $97B bid as OpenAI alleges harassment

OpenAI and its CEO, Sam Altman, have refuted allegations from Elon Musk, claiming that the tech mogul is attempting to impede OpenAI's progress as a competitor. Musk, who co-founded OpenAI with Altman in 2015 but departed before its rise to prominence, has since established his own AI venture, xAI, in 2023. 

The ongoing lawsuit centres around OpenAI's transition to a for-profit model, which the company argues is vital to securing $40 billion in funding by year-end. OpenAI maintains that the move is essential to remaining competitive in the rapidly evolving AI sector. 

In the legal proceedings, Altman has rejected a $97.4 billion unsolicited takeover bid from a Musk-led consortium, firmly stating "no thank you" and asserting that OpenAI is not for sale. The lawsuit, filed in the U.S. District Court for the Northern District of California, involves OpenAI's counterclaims against Musk's actions, which they describe as harassment intended to hinder their progress. 

OpenAI has accused Musk of employing a range of tactics to damage the company, including "press attacks, malicious campaigns broadcast to Musk's more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI's assets." These actions, according to OpenAI, are part of Musk's broader strategy to obstruct the company's transition. 

The company has requested that the court prevent Musk from any further actions and hold him "responsible for the damage he has already caused." The dispute between OpenAI and Musk is set to be resolved in a jury trial scheduled for spring next year. Meanwhile, Musk's legal team has not responded to requests for comment on these allegations. 

In a statement posted on X, Musk's social media platform, OpenAI accused Musk of "bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit." This follows Musk's previous legal action against OpenAI, where he accused the company of straying from its original mission to develop AI for humanity's benefit, instead focusing on corporate profit. 

The tension between Musk and OpenAI underscores the high stakes in the AI industry, where companies are vying for leadership and innovation. As OpenAI continues its push towards a new business model, the outcome of this legal battle could have significant implications for its future operations and its standing within the AI community. 

For now, OpenAI's focus remains on completing its transition to a for-profit model, which it views as crucial for attracting the necessary capital to compete effectively. The company's stance against Musk highlights its commitment to maintaining autonomy and advancing its AI technologies despite external pressures.