Elon Musk Leads Unsolicited $97.4 Billion Bid to Acquire OpenAI Amid Ongoing Conflict
A Team of investors led by Tesla CEO Elon Musk has proposed an unsolicited $97.4 billion bid to acquire OpenAI, the artificial intelligence company that Musk co-founded. This development amplifies the ongoing tension between Musk and OpenAI regarding its strategic direction, particularly following the firm’s shift from a nonprofit to a for-profit model.
In a statement, Musk articulated his desire to realign OpenAI with its foundational goal of being an “open-source, safety-focused force for good.”
OpenAI’s CEO, Sam Altman, promptly rejected the acquisition offer via a post on Musk’s social media outlet, X (previously known as Twitter), humorously suggesting, “No thank you, but we will buy Twitter for $9.74 billion if you want.” For context, Musk purchased Twitter for $44 billion in 2022, although various assessments suggest its value has considerably decreased since then.
According to a report from The Wall Street Journal, the bid is supported by Musk’s AI startup, xAI, among other investors. The proposal includes the potential for a merger between xAI and OpenAI if the acquisition comes to fruition. Other financial backers include Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, Joe Lonsdale’s 8VC, and Ari Emanuel, who is involved through his investment fund. Marc Toberoff, an attorney representing the group of investors, verified the bid but opted not to comment further.
The bid materializes as OpenAI continues its endeavor to evolve into a multibillion-dollar profit-driven AI enterprise—a transformation that Musk has publicly challenged. Rob Rosenberg, founder of Telluride Legal Strategies, suggested that Musk’s bid might disrupt OpenAI’s transition, regardless of the outcome.
“Musk’s move appears to be more of a statement to highlight OpenAI’s ongoing shift to a for-profit model,” Rosenberg noted. “He seems to be aiming to apply external pressure to OpenAI as it reassesses the worth of its business segments during this transition. That valuation should not be a matter of insiders negotiating among themselves.”
The rivalry between Musk and Altman can be traced back to the company’s inception. Musk has leveled accusations at OpenAI for abandoning its nonprofit mission, arguing it was designed to prioritize technological advancements for humanity’s benefit through open-source, safety-oriented AI development.
In defense, OpenAI has dismissed Musk’s claims, alleging his criticisms are connected to his unsuccessful attempts to merge the company with Tesla. Since transitioning from a nonprofit in 2015, OpenAI has attracted significant external funding, including a substantial $13 billion investment from Microsoft.
Adding to the tension, Musk has filed a revised lawsuit in August that alleges OpenAI has formed a “monopoly” with Microsoft, suggesting that this partnership seeks to suppress competing firms such as xAI. The lawsuit has expanded to include 26 claims across 107 pages, emphasizing the widening chasm between Musk and his former endeavor.
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