What does Don't be absurd mean?

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Megatron said this since 4:54 in this video after the big gray robot stand on the mountain told him don't release his enemy:

https://www.youtube.com/watch?v=wneTGA8rGNA

Does he said this to the big gray robot, right? And "Don't be absurd" mean "Don't be silly"?
Just know he later said "Now hand it over" (hand over the sword to him) with the orange robot.

@elisab3th And he said this to the big gray robot who's standing on the hill, right? Just need a confirmation.

@elisab3th No, i mean he's telling Megatron that don't tell him that he's gonna let the yellow robot go?. That's what i want to ask.

@elisab3th Doesn't make sense. The yellow robot is beaten by Megatron's minions and you can see that in next or previous scenes

The gray robot then said to Megatron (the Tank) that he should not let the yellow robot go.

Then Megatron said "Don't be absurd" and my question is whether Megatron said this to the gray robot that he won't let him go away?

Because he's asking the orange robot who is holding the sword to hand it over to him. And if you keep watching, you could see the orange robot to finish the yellow beaten robot off later.

@elisab3th Thank you very much