Elon Musk Makes $97.4 Billion Bid for OpenAI, Rejected by CEO Sam Altman
Elon Musk, the world’s richest person, made a bold bid of $97.4 billion to gain control of OpenAI, the organization behind ChatGPT. The unsolicited offer, submitted by Musk’s legal team to OpenAI’s board, was swiftly rejected by OpenAI’s CEO, Sam Altman, who humorously countered the proposal with a suggestion to buy Twitter instead. Musk’s bid is supported by investors including his own AI startup, xAI, and venture firms like Valor Equity Partners, Baron Capital, and 8VC. Despite the bid, OpenAI declined to comment further on the matter.
The bid follows a longstanding feud between Musk and Altman regarding the direction of OpenAI. Musk, who co-founded OpenAI in 2015, has been vocal in his criticism of the organization’s shift away from its nonprofit origins, accusing it of abandoning its mission to prioritize openness and safety. OpenAI’s growing ties with Microsoft, including a multibillion-dollar investment, have also fueled Musk’s concerns about its influence in the AI market and its competition with Musk’s xAI startup.
Musk has intensified his legal battle with OpenAI, filing an amended lawsuit that includes antitrust claims against the company. The lawsuit also accuses OpenAI of monopolistic practices, particularly related to its partnership with Microsoft, which Musk claims stifles competition. Meanwhile, OpenAI is transitioning to a for-profit model after securing substantial investments from tech giants, raising concerns among regulators about potential monopolies in the AI space.
In the midst of these tensions, SoftBank is reportedly in talks to invest up to $25 billion in OpenAI, potentially making it the largest investor. This comes as OpenAI continues to dominate the generative AI space, with new projects like the Stargate data center venture with Oracle and SoftBank. Musk’s growing rivalry with Altman signals a larger shift in the evolving AI industry, with competing interests and legal battles likely to intensify in the coming months.
Source: THIS DAY