Elon Musk is leading a group of investors in an attempt to acquire control of OpenAI, the non-profit organization behind the advanced AI chatbot ChatGPT. The Wall Street Journal reports that Musk's offer is valued at $97.4 billion and is backed by his own AI startup, xAI. This move comes amid a heated legal and public battle between Musk and OpenAI CEO Sam Altman, who co-founded the organization in 2015. Musk's bid faces competition from SoftBank, which is close to finalizing a $40 billion investment in OpenAI at a $260 billion valuation.
Elon Musk is leading a consortium of investors in an attempt to acquire control of OpenAI for $97.4 billion, according to a report by the Wall Street Journal on Monday. The offer targets the nonprofit organization that governs the artificial intelligence startup. The Journal reported that Musk's attorney, Marc Toberoff, submitted the bid on Monday.
Citing a statement from Musk provided by Toberoff, the WSJ stated, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.” In a post on X, formerly known as Twitter, OpenAI CEO Sam Altman responded, “no thank you but we will buy twitter for $9.74 billion if you want.” Musk then retorted to the OpenAI chief on X, calling him a “swindler,” and in a reply to a different user, labeled him “Scam Altman.” This exchange highlights the increasingly heated legal and public relations battle between Musk and Altman. Musk, a prominent advisor to former President Donald Trump, and Altman were co-founders of OpenAI in 2015, establishing it as a non-profit dedicated to AI research. OpenAI has since risen to become a major player in generative AI, launching ChatGPT in 2022 and triggering a surge in investment in new tools and infrastructure for next-generation AI products and services. Last week, sources told CNBC's David Faber that SoftBank was nearing the finalization of a $40 billion investment in OpenAI at a valuation of $260 billion. This poses a direct challenge to Musk, who has launched his own AI startup, xAI, and is currently suing OpenAI, alleging antitrust violations and attempting to prevent its conversion into a for-profit corporation. Adding another layer of complexity, OpenAI partnered with SoftBank and Oracle in a project announced by Trump shortly after his inauguration called Stargate. This initiative seeks to mobilize billions of dollars in AI infrastructure investment within the U.S. Musk's offer is supported by xAI, which the Journal reports could merge with OpenAI should a deal materialize. Other investors participating in the bid include Valor Equity Partners, Baron Capital, 8VC, and Ari Emanuel's investment fund, according to the paper. Toberoff sent a letter to the attorneys general in California and Delaware on January 7, requesting that bidding for OpenAI be opened up
AI Openai Elon Musk Sam Altman Chatgpt Xai Softbank Investment Acquisition Legal Battle
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