The rivalry between OpenAI CEO Sam Altman and Tesla CEO Elon Musk escalates as OpenAI’s board officially rejects Musk’s $97 billion takeover bid. This offer aimed to merge OpenAI with xAI, Musk’s AI venture, but the board has expressed no interest in the proposal.

Key Highlights

• Altman’s internal memo confirms the board’s unanimous support to remain independent.
• The takeover bid by Musk reflects his ongoing rivalry with OpenAI, which he co-founded in 2015.

Altman humorously addressed the rejection on X, suggesting Musk could purchase Twitter instead!

Musk’s Criticism of OpenAI

• Musk’s recent comments accuse OpenAI of departing from its initial non-profit mission.
• His push for legal action in November aimed to block OpenAI’s transition to profit-making but was unsuccessful.

Market Implications for AI Investments

This rejection strengthens OpenAI’s commitment to its independent vision while signaling healthy competition in the AI industry. As AI investments and M&A activity heat up, the ongoing rivalry between Musk and Altman may redefine market dynamics.

Final Thoughts

OpenAI’s stance against Musk’s takeover highlights its commitment to growth and innovation at its own pace. As both companies work toward their AI visions, scrutiny over their respective paths continues to generate significant industry interest.