A consortium led by billionaire Elon Musk has reportedly offered $97.4 billion to acquire OpenAI’s controlling nonprofit, intensifying tensions between Musk and OpenAI’s CEO, Sam Altman. This bid comes months after Musk sued OpenAI to prevent its transition into a for-profit entity.
Following the announcement, Altman responded on X with a dismissive remark: “No thank you but we will buy Twitter for $9.74 billion if you want.”
Musk’s lawsuit alleges that OpenAI, initially founded as a nonprofit focused on AI for the benefit of humanity, has shifted its priorities toward financial gain. The legal dispute escalated after OpenAI introduced “Stargate,” a $500 billion AI initiative launched at the White House after U.S. President Donald Trump returned to office. Musk has questioned the financial backing behind this project.
In a press statement, Musk emphasized his vision for OpenAI, saying, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”
The bid is reportedly supported by Musk’s AI venture, xAI, and could lead to a merger between xAI and OpenAI if successful. However, significant financial hurdles remain. OpenAI was valued at $157 billion in its last funding round, and SoftBank Group is currently negotiating a new funding round that could value the company at $300 billion.
Musk co-founded OpenAI in 2015 alongside Altman but left before its rapid rise in the AI industry. In 2023, he launched xAI as a competing venture. Meanwhile, OpenAI argues that transitioning to a for-profit model is necessary to secure the funding required for advancing AI technology.
The outcome of Musk’s bid remains uncertain, but the ongoing legal battle and corporate power struggle could have lasting implications for the future of AI development.
Source: Reuters
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