Elon Musk, along with a group of investors, has reportedly made a $97.4 billion offer to acquire a controlling stake in OpenAI, the non-profit organization behind the groundbreaking AI model, ChatGPT, according to the Wall Street Journal. This unexpected move could significantly impact OpenAI’s trajectory and reignite the ongoing feud between Musk and OpenAI CEO, Sam Altman.
Musk’s intention, as told to the Wall Street Journal, is to steer OpenAI back towards its original vision as an “open-source, safety-focused force for good.” This statement underscores Musk’s concerns about the organization’s shift towards a for-profit model, a move he believes deviates from its founding principles.
OpenAI initially operated as a non-profit but established a for-profit arm in 2019 under Altman’s leadership to secure funding from major players like Microsoft. Musk contends that this transition to a fully for-profit structure contradicts OpenAI’s initial mission. Conversely, OpenAI has presented evidence in court, including emails, suggesting Musk’s prior willingness to abandon the non-profit status before his departure in 2019. While OpenAI has expressed its intention to finalize the for-profit transition by late 2026, Musk’s bid introduces significant uncertainty.
Musk’s bid is backed by his AI venture, xAI, and other investors including Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC, a firm led by Palantir co-founder Joe Lonsdale. Ari Emanuel, brother of prominent political figure Rahm Emanuel, is also reportedly involved. If successful, the bid could potentially lead to a merger between OpenAI and xAI. Notably, Musk’s emphasis on returning OpenAI to its open-source and safety-focused roots doesn’t explicitly address maintaining its non-profit status.
OpenAI has yet to officially respond to Musk’s bid, but the move is likely to create tension, especially considering the history between Musk and Altman. The central question now revolves around the OpenAI board’s ability to reject the offer. The Wall Street Journal indicates Musk’s legal team is prepared to match or exceed any competing bids. While the potential landscape of other bidders remains unclear, OpenAI’s prominence in the AI field is sure to attract significant interest.
Adding fuel to the fire, shortly after the Wall Street Journal’s report, Sam Altman tweeted a seemingly sarcastic response: “no thank you but we will buy twitter for $9.74 billion if you want.” This pointed retort highlights the ongoing friction between the two figures and further complicates the future of OpenAI. The situation remains fluid, and the outcome of Musk’s ambitious bid will undoubtedly reshape the landscape of the AI industry.
