Elon Musk’s group of investors have offered to buy OpenAI for $97.4 billion. Tesla CEO and OpenAI CEO are going through a long-term feud which includes several legal complaints from both sides. As per WallStreet report, Musk’s attorney Marc Toberoff submitted the proposal documents to the OpenAI board of members on February 11. The offer sent by Toberoff had a written statement that the offer was “to buy all the assets of OpenAI, Inc.” with the money to be “used solely to support OpenAI, Inc.’s original charitable mission.”
He also wrote, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.” The group of investors includes Musk, his startup xAI, and long-time backers from his other companies, such as Baron Capital Group, Valor, Atreides, Vy Capital, Joe Lonsdale’s 8VC, and an investment fund led by Endeavor CEO Ari Emanuel.
Sam Altman Rejects Bid
In a post on X, OpenAI CEO Sam Altman wrote, “No thanks, but we’ll buy Twitter for $9.74 billion if you’re interested.” Musk then responded on X, calling him a “swindler.” In 2015, Musk and Altman founded the OpenAI and established it as a non-profit organization focused on AI research. However, for the last few years, Musk has been having a heated legal battle with OpenAI, currently, he does not have any holdings in OpenAI.
Elon Musk’s OpenAI Bid
Elon Musk is taking OpenAI to court, claiming they’re violating antitrust laws and trying to stop them from becoming a for-profit company. Meanwhile, lawyer Lawrence Toberoff has asked the Attorneys General of California and Delaware to open up OpenAI to competitive bids, according to a letter sent on January 7th. Elon Musk’s OpenAI bid has ignited the clash between the CEO, creating a buzz of Musk’s X.
OpenAI, the company behind ChatGPT, has become a major player in the world of AI. CEO Altman recently announced that the company is moving toward a for-profit model in 2025 to raise more funding for the advancement of artificial intelligence.
What’s Ahead for OpenAI?
ChatGPT’s creator, OpenAI, is now a big name in the AI world. With the launch of ChatGPT in 2022, OpenAI sparked a huge wave of investment in new AI tools and technologies. SoftBank is reportedly about to invest a whopping $40 billion in OpenAI, which would bring the company’s value to a staggering $260 billion. Microsoft has been OpenAI’s biggest supporter so far, but now SoftBank is stepping up to the plate.
After Trump’s inauguration, Altman announced a project called Stargate, where OpenAI teamed up with SoftBank and Oracle to invest billions in AI infrastructure in the U.S. The Journal also mentioned that xAI might merge with OpenAI if a deal happens.
