Elon Musk is spearheading a $97.4 billion bid to acquire OpenAI, the nonprofit organization that controls the groundbreaking AI company, according to a report by The Wall Street Journal on Monday.
This latest move intensifies Musk’s ongoing feud with OpenAI, the maker of ChatGPT, which he co-founded in 2015 before stepping down in 2018.
Musk’s attorney, Marc Toberoff, confirmed that the investment group submitted the offer to OpenAI’s board of directors, the Journal reported.
Responding to the bid, OpenAI CEO Sam Altman took to X (formerly Twitter), where he jokingly wrote: “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk, who acquired Twitter in 2022 for $44 billion, swiftly replied with a blunt “Swindler” in a post of his own.
Musk’s attorney did not immediately respond to requests for further comment.
The billionaire entrepreneur has been locked in a prolonged dispute with Altman and OpenAI. Musk has filed multiple lawsuits against the San Francisco-based company, despite his role in its founding. After leaving OpenAI in 2018, Musk launched his own AI venture, xAI, in 2023, positioning himself to compete in the rapidly growing AI space.
In December 2023, OpenAI announced a shift in its structure, transitioning from a nonprofit to a hybrid model. The company outlined plans to become a Delaware Public Benefit Corporation (PBC), a structure designed to balance the interests of investors, employees, and the public. This change was seen as a departure from its original nonprofit model, allowing for capped profit-sharing among stakeholders.
OpenAI is currently one of the world’s highest-valued startups, though it has struggled to turn a profit due to the immense costs of developing its cutting-edge AI technologies.
In January, former President Donald Trump announced a significant AI infrastructure initiative, backed by Japanese tech giant SoftBank, Oracle, and OpenAI. The venture, called Stargate, is expected to invest at least $500 billion in AI infrastructure in the U.S. However, Musk quickly cast doubt on the project, claiming that the promised funding may not materialize.
This marks a rare public divergence between Musk and Trump, who have maintained a close relationship. Musk was a major supporter of Trump’s 2020 campaign, spending $270 million in donations to aid the former president’s re-election bid.
AFP
