Elon Musk's $97.4 Billion Bid to Acquire OpenAI

Elon Musk has taken his battle with OpenAI to a new level by leading a staggering $97.4 billion bid to acquire the nonprofit arm of the company, as reported by The Wall Street Journal. The offer, submitted on Monday, is backed by Musk's AI venture, xAI, along with major investors such as Valor Equity Partners, Hollywood mogul Ari Emanuel, and Palantir co-founder Joe Lonsdale's 8VC.

This move comes at a critical time for OpenAI, which is already engaged in significant financial shifts. CEO Sam Altman is overseeing the company's transition to a for-profit model, aiming to raise $40 billion at a $340 billion valuation while spearheading an ambitious $500 billion AI infrastructure project. For Musk, who co-founded OpenAI alongside Altman in 2015 but left in 2019, this bid is a clear statement against what he perceives as OpenAI straying from its original mission of safe and open AI development. He is currently suing the company over this very issue.

"It's time for OpenAI to return to the open-source, safety-focused force for good it once was," Musk stated via his attorney, Marc Toberoff, to The Wall Street Journal. "We will make sure that happens."

Musk's offer further complicates OpenAI's plans to transition into a for-profit entity, especially since his team has pledged to outbid any competing offers. This adds pressure on Altman, who is already negotiating with Microsoft and other stakeholders over the new ownership structure.

Following the news, Altman responded on X: "no thank you but we will buy twitter for $9.74 billion if you want."

https://x.com/sama/status/1889059531625464090

OpenAI later referenced this post when asked for comment, while Toberoff did not immediately respond.