A group led by Elon Musk has made a $97.4 billion bid to acquire the nonprofit arm of OpenAI, the company behind ChatGPT, in what is being called a dramatic escalation in Silicon Valley’s AI race.
According to the Wall Street Journal (WSJ), Musk’s lawyer Marc Toberoff confirmed that the offer was formally submitted to OpenAI’s board of directors on February 10.
Musk’s High-Profile Investor Group
Musk’s bid is backed by a powerful group of investors, including:
- xAI (Musk’s AI company)
- Valor Equity Partners (a top venture capital firm)
- Hollywood mogul Ari Emanuel
- 8VC, the venture capital firm founded by Palantir co-founder Joe Lonsdale
The move comes at a pivotal time for OpenAI, as CEO Sam Altman is navigating major financial decisions, including:
- Converting OpenAI into a for-profit company
- Raising $40 billion, targeting a $340 billion valuation
- Launching Stargate, a $500 billion AI infrastructure project
Musk’s Attempt to ‘Reclaim’ OpenAI
Musk co-founded OpenAI in 2015 alongside Altman and several others but left the company in 2019. He has since criticized OpenAI for abandoning its original mission of building AI in an open, transparent, and nonprofit manner.
“It’s time for OpenAI to return to open-source and refocus on safety, as originally intended. We will make sure that happens,” Musk said in a statement provided by his lawyer to WSJ.
If accepted, Musk’s $97.4 billion bid would throw a major wrench into Altman’s plans to transition OpenAI into a fully for-profit company. Musk’s team has pledged to match or exceed any competing offer, making it difficult for Microsoft and other investors to negotiate ownership stakes under OpenAI’s current for-profit model.
Altman’s Swift Response
Shortly after the news broke, Altman fired back on X (formerly Twitter), posting:
“No thanks, but we’ll buy Twitter for $9.74 billion if you want.”
Musk quickly responded:
“Scammer.”
OpenAI later shared a link to Altman’s post when asked for comment.
In an internal Slack message to employees, Altman reassured his team:
“Our structure ensures that no individual can take control of OpenAI. These are just tactics to undermine us because we’re making great progress.”
With tensions between Musk and OpenAI reaching new heights, the AI industry now faces one of the biggest power struggles in Silicon Valley’s history.
(Sources: The Verge, WSJ)
