Elon Musk wants to buy OpenAI, but Sam Altman isn’t
selling. The ChatGPT-maker’s CEO dismissed a $97.4 billion bid from a Musk-led
consortium, according to the BBC.
The rejection highlights a growing rivalry between
Altman and Musk, who co-founded OpenAI but later split over its direction.
While Musk argues OpenAI has strayed from its nonprofit roots, Altman insists
the company must evolve to secure the funding required for AI advancements.
Musk’s legal team reportedly confirmed the bid was
submitted to OpenAI’s board on Monday. The billionaire entrepreneur has long
criticized OpenAI’s transition from a nonprofit to a for-profit model, arguing
it betrays its original mission of developing AI for the benefit of humanity.
Musk’s Attempt to Regain Control
Musk’s consortium, which includes xAI, Baron Capital
Group, and Emanuel Capital, seeks to steer OpenAI back to its nonprofit
foundation. Despite Musk’s stated intentions, some experts remain skeptical.
Interestingly, Altman wasted no time in dismissing the
bid, responding on Musk’s social platform X with a jab: “No thank you, but
we will buy Twitter for $9.74 billion if you want.” His comments highlight
the lingering tensions between the two tech moguls.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
Musk’s move adds another layer to an already complex
battle over OpenAI’s future. While Altman leads the charge toward a full
for-profit model, Musk has sued OpenAI, accusing its leadership of prioritizing
profit over public good.
His lawsuit, filed last year, aims to prevent OpenAI’s
transition, arguing that it contradicts the company’s original agreement. The
bid also arrives amid OpenAI’s ongoing fundraising efforts. The company was reportedly
valued at $157 billion in October 2023, with talks for a new funding round
reportedly pushing its valuation toward $300 billion.
The Board Holds the Key
While Altman has made his stance clear, OpenAI’s
future ultimately rests in the hands of its board. Some analysts believe the
board has a fiduciary duty to consider Musk’s bid, especially if he improves
the offer.
Not surprising, as I just learned that OpenAI had access to Twitter database for training. I put that on pause for now. Need to understand more about governance structure & revenue plans going forward.OpenAI was started as open-source & non-profit. Neither are still true.
— Elon Musk (@elonmusk) December 4, 2022
Adding another twist, OpenAI is spearheading a $500
billion AI infrastructure project alongside Oracle and international investors.
The initiative, unveiled by President Donald Trump, aims to cement the U.S.’s
dominance in AI development.
For now, OpenAI remains firm in its refusal to sell.
Musk’s consortium has hinted at a potential counteroffer, and legal battles
over OpenAI’s governance loom large.
This article was written by Jared Kirui at www.financemagnates.com.
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