A group of investors led by Elon Musk has made a significant bid of $97.4 billion to acquire OpenAI, the company behind ChatGPT. Musk’s attorney, Marc Toberoff, confirmed that the offer was submitted for “all assets” of the tech firm. This move adds another chapter to the ongoing conflict between Musk and OpenAI’s CEO, Sam Altman, over the direction of the influential AI company.
In response to the bid, Altman humorously tweeted on Musk’s platform, X, saying, “no thank you but we will buy Twitter for $9.74 billion if you want.” OpenAI has been pivotal in popularizing artificial intelligence technologies, attracting substantial investment in the process.
Musk and Altman co-founded OpenAI in 2015 as a non-profit organization, but their relationship deteriorated after Musk left the company in 2018. Recently, Altman has been restructuring OpenAI to operate as a for-profit entity, a decision Musk criticizes for straying from its original mission of developing AI for the benefit of humanity. OpenAI, however, argues that this transition is essential for securing funding to advance AI development.
Musk’s bid is supported by his AI firm, xAI, along with private equity firms such as Baron Capital Group and Valor Management. Musk stated, “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.”
The proposed $97.4 billion bid is significantly lower than the $157 billion valuation OpenAI received in its last funding round in October. Current discussions suggest the company could now be valued at around $300 billion.
Toberoff noted that the consortium would be willing to match or exceed any competing offers. He emphasized Musk’s role as a co-founder and a leading figure in the tech industry, asserting he is well-positioned to protect and enhance OpenAI’s technology.
In addition to this bid, OpenAI is collaborating with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to establish a $500 billion AI infrastructure in the U.S. This initiative, dubbed The Stargate Project, was announced at the White House and described by President Trump as the largest AI infrastructure project in history, aimed at securing the future of technology in the U.S.
Despite being a top advisor to Trump, Musk has raised doubts about the financial backing of this new venture, although he has not provided specific evidence for his claims.
By
