Musk’s proposal could escalate longstanding friction with OpenAI chief Sam Altman regarding the organization’s direction. A group led by Elon Musk has put forward a $97.4 billion offer to acquire the nonprofit overseeing OpenAI, months after the billionaire initiated legal action to prevent its shift to a commercial entity.
Musk’s bid, disclosed on Monday, may heighten existing discord with OpenAI’s CEO, who plays a pivotal role in the surge of generative AI technology. Altman swiftly responded on X: “No thanks, but we’d consider purchasing Twitter for $9.74 billion if you’re interested.”
The two are already engaged in a legal battle. Musk criticized OpenAI’s $500 billion initiative, Stargate, launched with much excitement at the White House soon after U.S. President Donald Trump resumed office, arguing that its investors lacked sufficient capital.
“It’s time for OpenAI to revert to the transparent, safety-oriented organization it once was,” Musk stated in a press release. “We will ensure that happens.”
OpenAI, Musk, his attorney Marc Toberoff, and key investor Microsoft did not immediately provide statements when contacted by Reuters.
Musk’s AI firm, xAI, is backing the bid and could potentially merge with OpenAI if the acquisition proceeds, as first reported by The Wall Street Journal.
Even without competition concerns, a transaction of this magnitude would require Musk and his partners to secure vast financial resources.
OpenAI attained a $157 billion valuation in its latest funding phase in October, reinforcing its status as one of the world’s most valuable private firms. SoftBank Group has been in discussions to spearhead a funding round of up to $40 billion for OpenAI, potentially elevating its valuation to $300 billion, according to a Reuters report in January.
Musk co-founded OpenAI with Altman in 2015 but departed before its breakthrough. In 2023, he established xAI, a competing artificial intelligence venture.
OpenAI is now striving to transition from a nonprofit to a profit-driven entity, citing the necessity of attracting significant investment to develop cutting-edge AI models.
Musk’s legal case against OpenAI and Altman asserts that the founders initially sought his funding to create a nonprofit dedicated to AI for the greater good but have since shifted toward commercial gains.
