Elon Musk Leads $97.4 Billion Bid to Take Over OpenAI

Billionaire Elon Musk, alongside a group of investors, has made a bold $97.4 billion offer to acquire OpenAI, reigniting debates over the company’s future and mission.

According to a report by the Wall Street Journal on Monday, Elon Musk is heading an investment group proposing $97.4 billion for the nonprofit organization that oversees OpenAI, signaling a new development in his ongoing conflict with the creator of ChatGPT.

According to the Journal, Marc Toberoff, an attorney for Musk, stated that he had submitted the bid to OpenAI’s board of directors.

“No thanks, but we’re willing to purchase Twitter for $9.74 billion if you’re interested,” wrote Sam Altman, CEO of OpenAI, in a post on X (formerly known as Twitter), seemingly responding to the proposal.

Musk, who acquired X for $44 billion in 2022 when it was known by its previous name, responded to the post with a single word: “Swindler.”

Musk’s lawyer did not promptly reply to a request for comment.

Tesla’s CEO, a close ally of former US President Donald Trump, has been embroiled in an ongoing conflict with Altman. Musk has repeatedly filed lawsuits against OpenAI, based in San Francisco.

Musk co-founded OpenAI in 2015, and since his departure from the company in 2018, it has emerged as a leading AI startup globally. In 2023, he established his own generative AI venture called xAI.

“We developed a custom structure: a for-profit entity overseen by the non-profit, featuring capped profit shares for investors and employees,” OpenAI stated in a December blog post that detailed their plan to transform into a Delaware Public Benefit Corporation.

According to the post, this change would necessitate that the company balance the interests of shareholders, stakeholders, and the public as it shifts its focus away from non-profit endeavors.

In early 2023, Musk founded xAI to gain a strong position in the technology anticipated to transform people’s lifestyles and work environments.

OpenAI is among the world’s most highly valued startups, yet it incurs losses due to the substantial expenses involved in developing its advanced technology.

In January, Trump announced a significant investment to develop AI infrastructure in collaboration with Japanese powerhouse SoftBank, cloud leader Oracle, and OpenAI.

In remarks at the White House, Trump announced that Stargate plans to invest a minimum of $500 billion in AI infrastructure within the United States.

OpenAI co-founder and CEO Sam Altman, SoftBank’s leader Masayoshi Son, and Oracle founder Larry Ellison were present at the announcement.

However, Musk rapidly expressed skepticism about the project, stating that the promised investment funds were not actually available.

The remarks highlighted an unusual rift between the world’s wealthiest individual and Trump, as Musk had been instrumental in the new US administration after contributing $270 million to support the Republican’s election campaign.