ELON MUSK HEADS CONSORTIUM TO ACQUIRE OPENAI FOR $97.4BN
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Elon Musk is heading an investment group proposing $97.4 billion for the nonprofit organization that oversees OpenAI, marking a new chapter in his ongoing conflict with the creators of ChatGPT, the Wall Street Journal reported on Monday.
Musk’s lawyer, Marc Toberoff, confirmed that the bid was submitted to OpenAI’s board of directors, according to the Journal.
“No thank you, but we will buy Twitter for $9.74 billion if you want,” OpenAI chief Sam Altman wrote in a post on X, formerly Twitter, apparently responding to the offer.
Musk, who acquired X under its previous name for $44 billion in 2022, responded to the post by simply stating: “Swindler.”
Musk’s attorney did not immediately provide a comment.
The Tesla CEO and close ally of former U.S. President Donald Trump has been embroiled in a continuing dispute with Altman, leading Musk to file multiple lawsuits against the San Francisco-based OpenAI.
Musk co-founded OpenAI in 2015, and the company has grown to become the world’s leading AI startup since his departure in 2018. He launched his own generative AI company, xAI, in 2023.
“We created a bespoke structure: a for-profit, controlled by the non-profit, with a capped profit share for investors and employees,” OpenAI said in a December blog post that outlined a plan to become a Delaware Public Benefit Corporation.
The shift would necessitate the company to balance the interests of shareholders, stakeholders, and the public as it moves away from a non-profit model, according to the post.
Musk founded xAI in early 2023 to gain a position in the technology expected to revolutionize how people live and work.
OpenAI is one of the world’s most valuable startups, but it operates at a loss due to the high costs of developing its advanced technology.
In January, Trump revealed a major investment aimed at building AI infrastructure, backed by Japanese giant Softbank, cloud leader Oracle, and OpenAI.
The venture, called Stargate, “will invest $500 billion, at least, in AI infrastructure in the United States,” Trump said in remarks at the White House.
OpenAI co-founder and CEO Altman, SoftBank’s CEO Masayoshi Son, and Oracle founder Larry Ellison were present at the announcement.
However, Musk quickly cast doubt on the project, claiming that the promised investment funds were not actually available.
These comments represented a rare disagreement between the world’s wealthiest man and Trump, with Musk having played a significant role in the new US administration after contributing $270 million to the Republican’s election campaign.
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