Openai A large number of quotes were rejected Friday Elon Musk and his alliance of investors to acquire the company’s assets.
what happened: According to the Wall Street Journal, the board of directors of Openai, an open artificial intelligence company, rejected a $97.4 billion bid from Musk and his investors. The decision was conveyed to Musk’s lawyers in a letter that stated that the proposal was not in the best interest of the Openai mission.
The Chairman of Openai, Bret Taylorstressing that the company will not be sold, the board of directors unanimously rejected Musk’s proposal.
Musk and his investors made an unexpected takeover proposal to the Openai board on Monday. But in court filings Wednesday, his legal team said Musk would abandon the acquisition if Openai agreed to stop transitioning to for-profit model.
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The board rejected Musk’s proposal to withdraw the bid under certain conditions, deeming it not a legitimate proposal. Meanwhile, Musk’s lawyer, Marc Toberoff, Criticize the board of directors’ actions, calling it “classic self-dealing.”
Why it matters: Musk’s bid for openai has always been a topic of strong speculation. This decision is the latest development in Musk’s ongoing dispute with Openai and its CEO Sam Altman. Musk, who co-founded OpenAI in 2015, accused the company of prioritizing profits over technology’s interests to humanity.
OpenAI is undergoing a structural transition that requires approval from its board of directors and attorneys in Delaware and California. The board believes that Musk’s bid has nothing to do with evaluating the fair value of the nonprofit.
The bid is made by Sam Altman, Openai CEO, in a way that “slows down” the competitors. In an interview with CNBC on Tuesday, he dismissed Musk’s idea of real interest in obtaining Openai.
Meanwhile, Musk’s bid for Openai is also seen as a distraction from Tesla’s challenge. Analysts are Oppenheimer Saying Musk’s bid for Openai is a discount on AI’s capital raising in October 2024, it is unlikely to lead to any discussion.
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