OpenAI's board of directors has unanimously rejected billionaire Elon Musk's offer to acquire the nonprofit organization that governs OpenAI, the company announced on Friday. Musk, an OpenAI co-founder, had offered $97.4 billion to buy the nonprofit, but the board has dismissed the bid, calling it an "attempt to disrupt his competition."

In a statement, Bret Taylor, board chair, emphasized that OpenAI is not for sale and that any potential reorganization of the company will prioritize its mission to ensure artificial general intelligence (AGI) benefits all of humanity. This decision comes amidst ongoing disputes between Musk and OpenAI, including a lawsuit filed by Musk last year alleging anticompetitive behavior and fraud.

The lawsuit, which is still ongoing, seeks to enjoin OpenAI's conversion to a traditional for-profit company, specifically a public benefit corporation. OpenAI was initially founded as a nonprofit before transitioning to a "capped-profit" structure in 2019. The nonprofit currently serves as the sole controlling shareholder of the capped-profit OpenAI corporation, which retains formal fiduciary responsibility to the nonprofit's charter.

In a court filing on Wednesday, lawyers for Musk stated that the billionaire would withdraw his bid if OpenAI's board "preserve[s] the charity's mission" and halts the conversion to a for-profit. However, attorneys for OpenAI countered that Musk's move to take control of the company is an "improper bid to undermine a competitor" and contradicts his position in court that a transfer of the startup's assets through restructuring would breach its mission as a charitable trust.

The rejection of Musk's offer is a significant development in the ongoing battle for control and direction of OpenAI. The company's restructuring efforts aim to ensure its mission to develop and promote AGI for the betterment of humanity, while Musk's lawsuit and acquisition bid have raised concerns about the potential impact on OpenAI's independence and goals.

The implications of this decision will be closely watched, as it may set a precedent for the governance and ownership of AI organizations. The ongoing dispute between Musk and OpenAI also highlights the complexities and challenges involved in developing and regulating AI technologies.

As the AI landscape continues to evolve, the outcome of this dispute will have significant consequences for the future of AI development, deployment, and governance. OpenAI's commitment to its mission and independence will be crucial in shaping the trajectory of AGI and its potential benefits for humanity.