Billionaire Elon Musk and a group of investors made a $97.4 billion unsolicited bid to acquire the nonprofit entity overseeing OpenAI, intensifying his ongoing conflict with OpenAI CEO Sam Altman. However, Altman swiftly rejected the offer on X, Musk’s social media platform, and mocked the site.
The offer—first reported by The Wall Street Journal—adds complexity to Altman’s efforts to transition OpenAI into a for-profit company. Musk, who co-founded OpenAI with Altman and others in 2015, is now embroiled in a legal dispute with the CEO.
After Musk’s departure, Altman established a for-profit subsidiary to attract funding and is currently working to separate it into an independent company, according to the Journal. Musk’s offer could complicate this process, as the nonprofit arm still retains a stake in the for-profit entity. The high valuation set by Musk’s bid could mean the nonprofit retains considerable control over the newly formed company.
Musk’s attorney, Marc Toberoff, told Forbes that if OpenAI’s leadership intends to become a fully for-profit corporation, it is crucial that the nonprofit is fairly compensated for losing control over what he described as “the most transformative technology of our time.”
Through Toberoff, Musk stated to Forbes: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
Less than an hour after the Journal reported Musk’s bid, Altman responded on X, saying, “no thank you but we will buy twitter for $9.74 billion if you want.” Musk replied by calling Altman a “swindler.”
Why Does Musk Take Issue With Openai Being For-Profit?
When OpenAI was founded, its stated mission was to advance digital intelligence in a way that benefits humanity without the constraint of financial returns. The company’s launch announcement emphasized that being free from financial obligations allowed it to focus on positive human impact. Musk sued OpenAI, accusing it of becoming a “closed-source de facto subsidiary” of Microsoft, one of its investors. He renewed the lawsuit in November, seeking to prevent OpenAI from transitioning to a for-profit entity. This legal battle is part of Musk’s long-running feud with Altman, with whom he co-founded OpenAI and co-chaired the nonprofit research group. The rivalry has escalated as Musk’s xAI competes with OpenAI and other AI companies.
$97,375,000,000.00 is the amount Musk and his group of investors offered to acquire OpenAI’s assets.
Forbes estimates Musk’s net worth at $391.3 billion as of Monday afternoon, making him the world’s wealthiest person. Altman’s estimated net worth stands at $1.2 billion.
