Elon Musk has made a bold move in the AI industry by leading a $97.4 billion bid to acquire OpenAI’s nonprofit arm.
According to The Wall Street Journal, the offer was presented to OpenAI’s board on Monday. Musk’s proposal is backed by his AI company, xAI, along with major investors, including Valor Equity Partners, Hollywood executive Ari Emanuel, and 8VC, co-founded by Palantir’s Joe Lonsdale.
The bid comes at a crucial time for OpenAI, as CEO Sam Altman is managing multiple high-profile projects. These include converting OpenAI into a for-profit company, raising $40 billion at a $340 billion valuation, and launching a massive $500 billion AI infrastructure initiative.
Musk, who co-founded OpenAI with Altman in 2015 before parting ways in 2019, has been vocal about his concerns regarding the company’s shift away from its original mission of open-source AI development. He is currently suing OpenAI, claiming it has abandoned its commitment to AI safety and transparency.
In a statement through his lawyer, Musk emphasized his goal of restoring OpenAI’s founding principles. He pledged to steer the company back toward an open-source, safety-driven approach.
The bid also complicates OpenAI’s ongoing transition to a for-profit structure, as Musk’s team has stated they are prepared to counter any competing offers. This places Altman in a difficult position, as he is already negotiating with Microsoft and other stakeholders over equity arrangements.
Following the news, Altman responded on X with a sarcastic remark: “no thank you but we will buy twitter for $9.74 billion if you want.” His comment highlights the ongoing tensions between the two tech leaders as the battle for AI dominance intensifies.
