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Elon Musk’s Group Offers $97.4bn for OpenAI – What Happens Next Will Shock You!

Elon Musk-Led Consortium Offers $97.4 Billion to Acquire OpenAI, Maker of ChatGPT

In a bold move, a consortium of investors spearheaded by tech mogul Elon Musk has made a staggering $97.4 billion bid to acquire OpenAI, the renowned creator of ChatGPT.

Confirming the bid, Musk’s attorney, Marc Toberoff, stated that the offer was made for the acquisition of “all assets” of the tech company and was submitted to its board on Monday.

This development marks the latest chapter in a longstanding feud between Musk, the wealthiest individual globally and a close confidant of US President Donald Trump, and OpenAI’s CEO, Sam Altman, regarding the future trajectory of the AI-focused start-up.

Responding to the bid, Altman took to Musk’s social media platform X and posted, “no thank you but we will buy twitter for $9.74 billion if you want.”

OpenAI, widely recognized for its role in popularizing artificial intelligence tools and catalyzing significant investments in the sector, was originally co-founded by Musk and Altman in 2015 as a non-profit organization. However, tensions escalated following Musk’s departure from the firm in 2018.

Altman is reportedly steering the company towards a for-profit model, a move contested by Musk who argues that this shift signifies a departure from the organization’s core mission of advancing AI for the betterment of humanity.

Contrary to Musk’s stance, OpenAI asserts that transitioning to a for-profit structure is imperative to secure the necessary funds for advancing cutting-edge AI models.

Backing the bid to acquire OpenAI are Musk’s AI company, xAI, in addition to several private equity firms like Baron Capital Group and Valor Management. “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,” Musk declared in a statement.

The $97.4 billion bid falls short of the $157 billion valuation the company garnered in its previous funding round in October last year, with ongoing discussions hinting at a potential $300 billion valuation in the upcoming funding round.

Toberoff indicated that the consortium remains open to considering and potentially surpassing any higher bids that may emerge. “As the co-founder of OpenAI and the most innovative and successful tech industry leader in history, Musk is the person best positioned to protect and grow OpenAI’s technology,” stated Musk’s attorney on behalf of the investors.

Furthermore, the creator of ChatGPT is collaborating with tech behemoth Oracle, alongside a Japanese investment firm and an Emirati sovereign wealth fund, to establish a groundbreaking $500 billion artificial intelligence infrastructure project in the US under the banner of The Stargate Project.

Announced at the White House by President Donald Trump, The Stargate Project is hailed as “the largest AI infrastructure project by far in history,” with a focus on safeguarding the future of technology within the US.

Despite his advisory role to Trump, Musk has cast doubts on the project’s financial backing, alleging that the pledged funds are not readily available. However, he has refrained from providing concrete evidence or details to substantiate these claims. — BBC