HIGHLIGHTS

Elon Musk, along with a consortium of investors, has proposed a $97.4 billion acquisition bid for the nonprofit that governs OpenAI.

Sam Altman reacted to Musk’s proposition with a humorous remark on X.

Altman’s retort not only dismissed the offer but also playfully jabbed at Musk by referring to X’s previous name.

In a striking development, Elon Musk is aiming to gain a significant foothold in the world of artificial intelligence by making an ambitious offer to purchase OpenAI. This offer, amounting to a staggering $97.4 billion, signifies Musk’s intent to take control of the organization behind innovative technology like ChatGPT. It marks a critical moment in Musk’s ongoing tensions with Sam Altman, the current CEO of OpenAI, and highlights differing visions for the future trajectory of artificial intelligence.

Musk’s legal representative, Marc Toberoff, confirmed that the multi-billion-dollar bid was formally presented to the board of OpenAI earlier this week, as detailed by The Wall Street Journal. If OpenAI’s board accepts this proposal, it could lead to a significant shift in the company’s direction, especially considering that Altman is already enacting plans to convert OpenAI from a nonprofit model into a profit-driven entity. Part of these plans includes a remarkable initiative called Stargate, aiming to raise funds in the range of $500 billion for advanced AI infrastructure.

The narrative surrounding Musk’s involvement with OpenAI is complex. Co-founding the organization in 2015, Musk has expressed growing dissatisfaction with its evolving focus. He has stressed the need for OpenAI to revert to its initial principles centered around safety and openness, stating, “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,” reflecting a clear critique of the organization’s current direction.

Furthermore, Musk previously sought legal intervention to halt OpenAI’s transition to a profit-oriented model, underscoring his commitment to returning to its foundational nonprofit goals. For additional context, you can read about Musk’s legal efforts here.

Altman’s response to Musk’s audacious offer was both witty and dismissive. Taking to X (previously Twitter), he quipped, “no thank you but we will buy Twitter for $9.74 billion if you want.” This remark not only served to reject Musk’s proposal but also cleverly referenced X’s history and Musk’s own controversial acquisition of the platform, adding an extra layer of sarcasm to the exchange.

The rivalry that has brewed between Musk and Altman is not new. Since Musk’s departure from OpenAI, he has increasingly accused the organization of straying from its original mission, which focused on ethical AI development. His discontent escalated to legal action, with claims that OpenAI is unduly aligned with Microsoft—a tech giant that has funneled billions into the organization. In response, OpenAI has pointed out that Musk himself initially supported the pivot to a for-profit model before leaving when he lost influence over the company.

For more in-depth insight into the ongoing conflict between Musk and Altman, follow this link here.

Musk’s investment group, which includes well-known backers like xAI and prominent funds such as Valor Equity Partners, Baron Capital, and Atreides Management, is poised to potentially reshape the landscape of AI development. Notably, Ari Emanuel, CEO of Endeavor, is also lending his weight to Musk’s endeavor through his own investment fund. Should this acquisition come to fruition, it could lead to a merger between OpenAI and Musk’s xAI.

On the other hand, OpenAI is navigating a transformative journey, as it aims to finalize its transition to a for-profit entity by 2026. Amidst this landscape of change, Musk’s investor group remains ready to augment their offer should they receive competing bids. This unfolding situation raises critical questions about the future of OpenAI and the broader field of artificial intelligence.