Elon Musk, leading a consortium including his AI venture xAI and investors like Baron Capital Group and Emanuel Capital, has made an unsolicited $97.4 billion bid to acquire the nonprofit entity controlling OpenAI. Musk aims to revert OpenAI to its original nonprofit mission, expressing concerns over its shift towards a for-profit model. OpenAI CEO Sam Altman promptly dismissed the offer, suggesting humorously on X (formerly Twitter) that they could purchase Twitter for $9.74 billion instead, referencing Musk’s 2022 acquisition of the platform.
This move intensifies the ongoing dispute between Musk and Altman, who co-founded OpenAI in 2015. Musk departed from the company in 2018 due to strategic disagreements and subsequently established xAI in 2023. He has since criticized OpenAI’s transition to a for-profit structure, filing a lawsuit last year alleging a deviation from its founding principles.
The bid introduces complexities for OpenAI’s current fundraising efforts, including a planned $40 billion funding round led by SoftBank, which would value the company at $300 billion. The board must now consider Musk’s offer amidst these developments.