The Battle for OpenAI: Elon Musk Offers $97.4 Billion Takeover Bid
In a dramatic turn of events, a consortium of investors spearheaded by the enigmatic Elon Musk has put forth a staggering $97.4 billion offer to acquire OpenAI, the renowned creator of ChatGPT.
The news was confirmed by Musk’s attorney, Marc Toberoff, who revealed that the bid for the “all assets” of the tech company was formally presented to its board on Monday.
This bold move is just the latest development in a long-standing feud between Musk, the world’s wealthiest individual and close confidant of US President Donald Trump, and OpenAI’s CEO Sam Altman regarding the direction of the groundbreaking start-up at the forefront of the AI revolution.
Responding to the takeover bid, Altman took to Musk’s social media platform X to cheekily propose, “no thank you but we will buy twitter for $9.74 billion if you want.”
OpenAI is widely lauded for democratizing artificial intelligence tools and igniting significant investment in the field.
Musk and Altman initially co-founded the company in 2015 as a non-profit organization, but their partnership turned sour after Musk departed the company in 2018.
Altman is reportedly in the process of restructuring OpenAI to transition into a for-profit entity, a decision contested by Musk who argues that the move contradicts the company’s original mission of advancing AI for the greater good of humanity.
However, OpenAI justifies its shift to a for-profit model as necessary to secure the financial resources essential for advancing cutting-edge AI models.
The bid to acquire OpenAI is supported by Musk’s AI venture xAI, in conjunction with prominent private equity firms such as Baron Capital Group and Valor Management.
“It’s time for OpenAI to revert to its roots as an open-source, safety-driven force for positive change. We will ensure that vision is realized,” Musk asserted in a statement.
Although the $97.4 billion offer falls short of the company’s $157 billion valuation from its previous funding round in October, discussions hint at a potential valuation of $300 billion in the next funding round.
Toberoff stated that the consortium remains open to surpassing any higher bids that may emerge, emphasizing Musk’s unparalleled position as the co-founder of OpenAI and a trailblazer in the tech industry.
Additionally, the mastermind behind ChatGPT is collaborating with Oracle, a major US tech corporation, alongside a Japanese investment firm and an Emirati sovereign wealth fund to establish a monumental $500 billion artificial intelligence infrastructure project in the US.
The ambitious initiative, dubbed The Stargate Project, was unveiled at the White House by President Donald Trump as “the largest AI infrastructure project in history” aimed at preserving America’s technological dominance.
Despite his advisory role in the Trump administration, Musk has cast doubt on the project’s financial backing, suggesting that the pledged funds may not be readily available, without disclosing further details or evidence. — BBC
