Elon Musk Offers $97.4 Billion to Buy OpenAI, Intensifying Rivalry with CEO Sam Altman

A Consortium of Investors Led by Musk Submits Bid to OpenAI’s Board

A consortium of investors led by billionaire Elon Musk has offered a staggering $97.4 billion to buy the nonprofit that controls artificial intelligence startup OpenAI, according to a report by the Wall Street Journal. The offer is the latest development in a longstanding battle between OpenAI CEO Sam Altman and Musk over the future of the startup at the heart of a boom in generative AI technology.

A Longstanding Rivalry

Musk’s attorney, Marc Toberoff, submitted the bid to OpenAI’s board on Monday, according to the report. In a statement provided by Toberoff, Musk said, “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.”

Background on the Offer

Musk and Altman co-founded OpenAI in 2015, but Musk left the company before it took off. He later founded the competing AI startup xAI in 2023. OpenAI is now trying to transition into a for-profit from a nonprofit entity, which it says is required to secure the capital needed for developing the best artificial intelligence models.

Musk’s Motivations

Musk’s motivations for the offer are unclear, but it is likely that he wants to regain control of OpenAI and steer it in a direction that aligns with his own vision for the company. Musk has been a vocal critic of OpenAI’s decision to transition to a for-profit entity, and has accused the company of prioritizing profits over safety and ethics.

What’s Next?

The bid is being backed by Musk’s AI company xAI, which could merge with OpenAI following a deal, according to the WSJ report. OpenAI, Musk, Toberoff, and OpenAI-backer Microsoft did not immediately respond to Reuters’ requests for comment.

Conclusion

The offer by Musk’s consortium is a significant development in the ongoing rivalry between OpenAI and xAI. The outcome of the bid will likely have significant implications for the future of OpenAI and the development of generative AI technology.

FAQs

Q: What is OpenAI?
A: OpenAI is a nonprofit artificial intelligence research organization that was founded in 2015 by Elon Musk and Sam Altman.

Q: What is xAI?
A: xAI is a competing AI startup founded by Elon Musk in 2023.

Q: Why is Musk offering to buy OpenAI?
A: The motivations behind Musk’s offer are unclear, but it is likely that he wants to regain control of OpenAI and steer it in a direction that aligns with his own vision for the company.

Q: What are the implications of the bid?
A: The outcome of the bid will likely have significant implications for the future of OpenAI and the development of generative AI technology.