SAN FRANCISCO: OpenAI`s board chairman has said it has unanimously rejected an Elon Musk-led offer to buy the hot artificial intelligence company for $97.4 billion.

`OpenAI is not for sale, and the board has unanimously rejected Mr Musk`s latest attempt to disrupt his competition,` chairman of the board Bret Taylor said on Friday in a statement posted by the company on Musk-owned X, formerly Twitter.

`Any potential reorganisation of OpenAI will strengthen our nonproñt and its mission to ensure AGI (artificial general intelligence) benefits all of humanity,` the statement continued.

Musk filed court documents on Wednesday say-ing that he would withdraw the offer to buy OpenAI if its board returns the artificial intelligence pioneer to a nonprofit `charity` model.

OpenAI currently operates a hybrid structure,as a non-profit with a moneymaking subsidiary.

The change to a forprofit model one that Altman considers crucial for the company`s development had exacerbated ongoing tensions with Musk.

Musk`s bid, valuing the OpenAI non-profit at $97.4 billion approximately $3Obn above the level in current negotiations, according to The Information appears designed to disrupt the company`s fundraising efforts.-AFP