Elon Musk, renowned entrepreneur and co-founder of OpenAI, is spearheading a group of investors in a bold move to acquire control of the nonprofit entity overseeing the artificial intelligence startup. The consortium, offering a staggering $97.4 billion, includes prominent investors such as Valor Equity Partners, Baron Capital, 8VC, and Ari Emanuel’s investment fund. The proposal, backed by Musk’s own xAI, hints at a potential merger with OpenAI if the acquisition succeeds.
Musk's attorney, Marc Toberoff, formally submitted the bid to OpenAI's board on Monday. Toberoff also reached out to the attorneys general in California and Delaware on January 7, advocating for an open bidding process for OpenAI's controlling nonprofit. This strategic move comes amid Musk's escalating legal and public relations battle with Sam Altman, his former co-founder and current leader of OpenAI.
Founded in 2015 by Musk and Altman as a nonprofit dedicated to AI research, OpenAI has since grown into a formidable entity in the field of generative AI. The launch of ChatGPT in 2022 solidified its position as an industry giant. However, Musk has been vocal about his dissatisfaction with the organization's current trajectory, accusing it of antitrust violations and attempting to thwart its conversion into a for-profit corporation.
"It's time for OpenAI to return to the open-source, safety-focused force for good it once was." – Elon Musk
In contrast to Musk's ambitions, OpenAI is reportedly nearing a significant investment from SoftBank, which is set to inject $40 billion at a $260 billion valuation. This partnership aligns with the Stargate project, a collaboration with SoftBank and Oracle announced by President Donald Trump shortly after his inauguration. Stargate aims to channel billions into AI infrastructure development within the United States.
Despite the high-profile nature of Musk's offer, Altman's response has been dismissive.
"no thank you but we will buy twitter for $9.74 billion if you want" – Sam Altman
As tensions between Musk and Altman continue to rise, Musk's criticisms have extended to social media, where he has labeled Altman as a "swindler" and "Scam Altman." The bid represents more than just a financial maneuver; it symbolizes Musk's commitment to redirecting OpenAI towards its original mission of open-source and safety-oriented AI development.