Elon Musk Leads $97.4 Billion Bid to Take Control of OpenAI

Elon Musk and a group of investors have submitted an offer to acquire control of OpenAI for $97.4 billion, according to CNBC. The bid targets the nonprofit entity that oversees the artificial intelligence startup behind ChatGPT.

Musk’s attorney, Marc Toberoff, confirmed to CNBC that he submitted the offer on Monday. In a statement on Musk’s behalf, Toberoff emphasized Musk’s desire to steer OpenAI back to its original mission. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in the statement provided to CNBC.

The Wall Street Journal first reported on the unsolicited bid, which comes amid a growing rift between Musk and OpenAI CEO Sam Altman. The two were among the original co-founders of OpenAI in 2015, when it was established as a nonprofit dedicated to AI research. Since then, OpenAI has transformed into a dominant force in the AI industry, launching ChatGPT in 2022 and attracting major investment.

Related: Judge Signals Parts of Elon Musk’s Lawsuit Against OpenAI Could Go to Trial

Tensions between Musk and Altman have escalated in recent months, with legal disputes and public clashes playing out on social media. In response to Musk’s bid, Altman posted on X (formerly Twitter), “no thank you but we will buy twitter for $9.74 billion if you want.” Musk quickly fired back, calling Altman a “swindler” and later referring to him as “Scam Altman” in a reply to another user.

Musk’s AI venture, xAI, is positioned as a competitor to OpenAI. Meanwhile, CNBC recently reported that SoftBank is nearing a $40 billion investment in OpenAI, valuing the company at $260 billion. OpenAI has also formed partnerships with SoftBank and Oracle as part of an initiative called Stargate, which was announced shortly after President Donald Trump’s inauguration. The project aims to drive investment in AI infrastructure within the U.S.

Musk’s bid is backed by several investors, including xAI, Valor Equity Partners, Baron Capital, 8VC, and Ari Emanuel’s investment fund, per the Wall Street Journal. The report also indicated that if a deal were to proceed, xAI could potentially merge with OpenAI.

Source: CNBC