Elon Musk-led group has launched a $97.4 billion bid to acquire the nonprofit entity that governs OpenAI.
Elon Musk-led group has launched a $97.4 billion bid to acquire the nonprofit entity that governs OpenAI while tensions between Tesla CEO and OpenAI CEO Sam Altman remain.
| Key Takeaways: – Elon Musk-led group has offered $97.4 billion to acquire OpenAI’s governing nonprofit to block its transition to a for-profit model. – Musk sued OpenAI in 2023, claiming it abandoned its nonprofit mission for commercial interests and sought an injunction to prevent its restructuring. |
The offer, announced Monday, comes as Musk seeks to prevent the AI startup from transitioning into a for-profit company.
Altman quickly dismissed the bid with the following reply:
Musk co-founded OpenAI with Altman in 2015 as a nonprofit but parted ways before the company’s rise to prominence. In 2023, he founded his own AI venture, xAI. OpenAI has since pursued a shift to a for-profit model, arguing that the move is necessary to secure funding for advancing AI technologies.
The billionaire’s legal battle with OpenAI began in August last year when he sued Altman and other executives, claiming they violated agreements by prioritizing profit over public benefit. In November, Musk sought a preliminary injunction to prevent OpenAI from restructuring into a for-profit entity. He has argued that OpenAI was initially intended to focus on AI development for the greater good but has since shifted its mission toward commercial interests.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement on Monday. “We will make sure that happens.”
Elon Musk-led group makes an offer amid the complex political ties. A known ally of former President Donald Trump, Musk has been leading the Department of Government Efficiency under Trump’s administration. Despite this connection, he recently criticized a $500 billion OpenAI-led initiative announced at the White House.
Meanwhile, OpenAI remains a dominant player in the AI sector. The company was last valued at $157 billion, with reports suggesting that SoftBank Group is considering leading a new funding round that could push OpenAI’s valuation to $300 billion.
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