Elon Musk is leading a group that has made a $97.4 billion offer to take control of OpenAI, just months after suing the company.
Musk, who co-founded OpenAI in 2015 but left in 2018, has been vocal about his concerns regarding the company’s shift toward a for-profit model. He believes OpenAI has strayed from its original mission of open-source AI development. In a statement, Musk said, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
The bid, supported by Musk’s own AI company, xAI, targets the non-profit arm that controls OpenAI, not the entire operation. If successful, the bid could result in a merger. Musk’s offer has sparked tensions with OpenAI’s CEO, Sam Altman, who responded sarcastically on X: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Musk’s involvement with OpenAI dates back to its founding, but after his departure in 2019, he started his own AI company, xAI. He has had ongoing disagreements with Altman over OpenAI’s direction. Musk sued OpenAI over its restructuring plans last year, withdrew the lawsuit, and later re-filed it.
The bid is backed by several investors, including those from xAI, Joe Lonsdale’s firm, and entertainment mogul Ari Emanuel’s investment fund. Musk’s consortium has made it clear they are prepared to match or exceed any other offers that may arise for OpenAI.
OpenAI has defended its restructuring, stating that it is necessary for the company’s future and its ability to access capital. The organization has also expressed that maintaining its non-profit structure would hinder its ability to compete in the fast-evolving world of AI innovation. The restructuring is expected to be completed by 2026.
