Elon Musk, known for his involvement in the tech industry, has put forth a bid of $97.4 billion to acquire the nonprofit organization controlling OpenAI. This move comes after Musk previously sued the artificial intelligence startup to prevent it from transitioning into a for-profit company. The bid could escalate tensions between Musk and OpenAI CEO Sam Altman regarding the future of the startup, which is at the forefront of generative AI technology.
Altman responded to Musk’s bid by suggesting that OpenAI could purchase Twitter for $9.74 billion instead. The ongoing lawsuit between Musk and OpenAI revolves around a $500 billion project called Stargate, which Musk criticized and questioned the funding behind it. Musk stated in a press release that it is time for OpenAI to return to its original focus on open-source and safety-centric AI development.
Musk’s bid is backed by his AI company xAI, which may merge with OpenAI following a potential deal. Despite the significant amount involved in the bid, Musk and his consortium would need to raise substantial funds to secure the acquisition. OpenAI, valued at $157 billion in its latest funding round, is one of the most valuable private companies globally.
Musk co-founded OpenAI with Altman in 2015 but later founded xAI as a competitor. OpenAI is seeking to transition into a for-profit entity to access the necessary capital for AI model development. Musk’s lawsuit alleges that OpenAI strayed from its initial mission of using AI for societal benefit and is now focused on profit-making. The outcome of Musk’s bid and the ongoing legal dispute with OpenAI remains to be seen.
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