Elon Musk's $97.4 billion offer to acquire OpenAI, Sam Altman mocks him with $9.74 billion Twitter offer
Elon Musk, leading a group of investors, offered $97.4 billion to acquire OpenAI's non-profit arm. Sam Altman rejected the bid, intensifying their rivalry amid Musk's lawsuits against OpenAI.
FollowA few investors led by Tesla CEO Elon Musk have offered $97.4 billion to acquire the non-profit arm of OpenAI, according to The Wall Street Journal. This bid has escalated the already tense rivalry between Musk and OpenAI, as Musk is suing the company for straying from its original open-source, non-profit mission and allegedly stifling fair competition. OpenAI CEO Sam Altman has publicly dismissed any interest in Musk's offer.
The proposal, submitted by Musk's lawyer Marc Toberoff to OpenAI's board on Monday, was accompanied by Musk’s statement: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
Elon Musk's offer and Sam Altman's counter offer
Elon Musk’s bid is supported by his AI company, xAI, which he aims to merge with OpenAI if the deal succeeds. His external backers reportedly include Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC, Hollywood executive Ari Emanuel, and Palantir co-founder Joe Lonsdale.
In response, Sam Altman publicly rebuked Musk on X, the social media platform Musk acquired in 2022 for $44 billion. Altman quipped, “No thank you, but we’ll buy Twitter for $9.74 billion if you want,” mocking the platform’s reported devaluation since Musk’s takeover.
Internally, Altman reassured OpenAI employees, stating, “Our structure ensures that no individual can take control of OpenAI. These are tactics to weaken us because we’re making great progress,” according to a Slack message.
The OpenAI vs Musk saga
OpenAI was founded as a non-profit in 2015 by Sam Altman, Elon Musk, and others, aiming to counter Google’s dominance in AI. Musk left the organization over disagreements, and Altman became CEO. In 2019, OpenAI established a for-profit arm to attract investments from companies like Microsoft and is now transitioning to a fully for-profit structure, while the non-profit retains a stake.
Musk has filed multiple lawsuits against OpenAI, and in late 2023, also targeted Microsoft, accusing them of monopolizing the generative AI market and discouraging investment in competitors like xAI.
In November 2023, OpenAI’s board briefly ousted Altman, citing inconsistent communications. However, five days later, they reversed the decision, reinstating Altman and restructuring the board that had removed him.
Also Read: OnePlus Nord 4 to Poco X7 Pro: Top 5 gaming smartphones under Rs 30,000
subscribe to Asianet Newsable WhatsApp channel by clicking here.
