Elon Musk, along with a group of investors, has made an audacious $97.4 billion bid to take control of OpenAI, the nonprofit overseeing the development of cutting-edge AI technologies like ChatGPT. Musk’s attorney, Marc Toberoff, confirmed that the offer was submitted to OpenAI’s board on Monday. The bid targets the nonprofit entity itself, which controls OpenAI, with Musk calling for a return to the organization’s original vision as a “safety-focused force for good.”
In a public response, OpenAI’s CEO Sam Altman rejected the offer with a quick-witted reply on X (formerly Twitter), humorously countering by suggesting Musk purchase Twitter instead for $9.74 billion. Musk, known for his fiery online persona, didn’t hold back, referring to Altman as a “swindler” and a “Scam Altman” in further posts.
This dramatic development comes amid a high-stakes legal and business battle between the two, who were co-founders of OpenAI in 2015. The organization was initially created as a nonprofit focused on AI research, but has evolved into a major player in generative AI. Since launching ChatGPT in 2022, OpenAI has become a central figure in the rapidly expanding AI sector.
Musk’s offer is backed by his AI venture, xAI, alongside other investors like Valor Equity Partners, Baron Capital, 8VC, and Ari Emanuel’s investment fund. These investors are aiming to reshape the landscape of AI and potentially merge xAI with OpenAI if the deal succeeds.
Meanwhile, OpenAI’s valuation has been bolstered by a potential $40 billion investment from SoftBank, which would place the company at a $260 billion valuation. Musk’s xAI has its own ambitions to compete in the AI sector, and Musk is currently pursuing legal action against OpenAI, accusing it of antitrust violations and opposing its transition into a for-profit entity.
The dispute between Musk and Altman is intensifying as the future of AI development hangs in the balance, with multiple players vying for control and influence over this rapidly advancing technology.
The latest twist adds another chapter to the ongoing saga of tech rivalry, power plays, and corporate maneuvering at the highest levels.
Sam Altman at World Economic Forum Annual Meeting Picture by WEF on Flickr CC BY-NC-SA 2.0
