"OpenAI is not for sale, and the board has unanimously rejected Mr. Musk's latest attempt to disrupt his competition," stated chairman Bret Taylor in a statement posted on Musk-owned X, formerly Twitter.
The statement continued that any reorganization of OpenAI would strengthen its nonprofit mission to ensure artificial general intelligence (AGI) benefits all of humanity.
Musk, who filed court documents on Wednesday, indicated he would withdraw his offer if OpenAI returned to a non-profit "charity" model.
OpenAI currently operates as a hybrid structure, combining a nonprofit with a for-profit subsidiary. This change to a for-profit model, deemed essential for development by Altman, has exacerbated tensions with Musk.
Musk and Altman were part of the 11-person founding team of OpenAI in 2015, with Musk contributing $45 million in initial funding. Musk left the company three years later, citing a potential conflict of interest with Tesla's AI focus.
Musk later founded his own AI company, xAI, in early 2023 after OpenAI's success in the technology sector.
Due to the high costs of AI model development, OpenAI is seeking a new corporate structure to provide stable governance and attract investor equity. Approval from California and Delaware authorities is required for the transition to a traditional for-profit company, which will also consider the valuation of OpenAI's nonprofit arm.
Current investors favor a lower valuation to maximize their stake in the new company. Musk's bid, valuing OpenAI at $97.4 billion—about $30 billion higher than current negotiations—appears aimed at disrupting fundraising efforts.
OpenAI's Chief Global Affairs Officer Chris Lehane claimed Musk's offer originated from a competitor struggling to keep up with the technology and market competition.