Musk’s $97.4B OpenAI Bid Rejected by Altman: Battle for AI Control Intensifies
11th February 2025, Kathmandu
Elon Musk has proposed a $97.4 billion bid to acquire OpenAI, the non-profit organization behind ChatGPT. This move escalates tensions with OpenAI CEO Sam Altman, who has been pushing to turn the company into a for-profit entity.
Musk’s $97.4B OpenAI Bid Rejected
Musk’s Vision for OpenAI
Musk, a co-founder of OpenAI, has criticized the organization for shifting focus from its original non-profit mission to a for-profit model. He believes OpenAI should return to its initial goal of being an open-source, safety-focused company that benefits humanity. His investor group submitted the unsolicited offer, aiming to regain control of the organization.
Altman Rejects the Bid
Sam Altman swiftly rejected Musk’s offer on X (formerly Twitter), with a biting comment, “No thank you, but we will buy Twitter for $9.74 billion if you want.” Altman’s post highlighted his resistance to Musk’s proposal and reflected the strained relationship between the two tech moguls. OpenAI’s board also indicated they had no interest in the bid.
Financial Implications for Musk
Musk’s offer could require him to raise substantial funds, possibly selling shares in Tesla or using his SpaceX holdings as collateral. After spending $44 billion to acquire Twitter, financing such a massive deal could be challenging, especially with Musk’s existing financial commitments.
OpenAI’s Current Position
OpenAI, valued at around $157 billion, has been negotiating with investors like SoftBank to secure a $40 billion investment. The company’s shift towards commercialization has raised concerns about its original mission, which Musk has publicly opposed. Musk believes the non-profit approach is essential for ensuring AI development prioritizes public good over profit.
Impact on AI Industry
Musk’s offer to buy OpenAI could significantly alter the AI landscape. If the deal goes through, it might lead to a merger between OpenAI and Musk’s own AI startup, xAI. However, OpenAI is unlikely to accept the bid, given its current direction and funding discussions.
The ongoing feud between Musk and Altman signals a pivotal moment in AI development. Investors and industry experts are closely watching how this situation unfolds, as it could shape the future of artificial intelligence.
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