Elon Musk, co-founder of OpenAI, is leading a consortium of investors in a $97.4 billion bid to acquire the nonprofit organization that controls OpenAI. This move comes amid ongoing tensions between Musk and OpenAI’s CEO, Sam Altman, over the company’s direction and its plans to transition from a nonprofit to a for-profit entity. Musk’s consortium includes his AI company xAI, Baron Capital Group, Valor Management, and others.
Altman swiftly rejected the unsolicited offer, responding on social media with a counterproposal to purchase Twitter from Musk for $9.74 billion, referencing Musk’s 2022 acquisition of the platform for $44 billion. This exchange highlights the escalating rivalry between the two tech leaders. Musk has been critical of OpenAI’s shift towards commercialization, expressing concerns that it deviates from the organization’s original mission to develop AI for the benefit of humanity.
In a statement, Musk emphasized his desire to return OpenAI to its foundational principles, stating, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.” He has previously taken legal action against OpenAI, alleging that the company’s restructuring efforts prioritize profit over public welfare.
Industry analysts suggest that Musk’s bid could complicate OpenAI’s fundraising efforts and its transition to a for-profit model. The offer sets a significant valuation benchmark, potentially influencing future investment discussions. As OpenAI navigates these developments, the outcome of Musk’s bid remains uncertain, with potential implications for the future landscape of artificial intelligence research and development.
