A consortium led by Elon Musk has made a $97.4 billion offer to acquire OpenAI, the artificial intelligence company known for developing ChatGPT. The bid, aimed at returning OpenAI to its original nonprofit status, was swiftly declined by CEO Sam Altman, who humorously suggested purchasing Twitter instead for $9.74 billion.
This development intensifies the ongoing dispute between Musk and Altman, who co-founded OpenAI in 2015. Musk departed from the company in 2018 due to strategic disagreements. Since then, he has been critical of OpenAI’s shift towards a for-profit model and its close association with Microsoft.
The offer from Musk’s consortium, which includes his AI venture xAI and several investment firms, was submitted to OpenAI’s board of directors. The proposal seeks to revert OpenAI to its initial mission of open-source research and public safety in AI development.
Altman’s dismissal of the bid underscores the deepening rift between the two tech leaders. In response to Musk’s offer, Altman quipped on social media, “No thank you but we will buy Twitter for $9.74 billion if you want,” referencing Musk’s 2022 acquisition of the platform for $44 billion.
Musk’s legal actions against OpenAI have been ongoing, with lawsuits alleging that the company has strayed from its founding principles. He contends that OpenAI’s transition to a for-profit entity and its partnership with Microsoft have compromised its original mission.
The timing of Musk’s bid coincides with OpenAI’s plans to convert into a for-profit public benefit corporation, a move intended to attract substantial investments for future AI projects. This transition has been a point of contention, with Musk arguing that it deviates from the organization’s original nonprofit objectives.
Industry analysts suggest that Musk’s offer could complicate OpenAI’s efforts to secure funding for its ambitious AI initiatives. The bid effectively sets a market valuation for OpenAI, which may influence investor perceptions and regulatory considerations.
