Elon Musk’s $100 Billion Bid for OpenAI Rejected
A group of investors led by Elon Musk has made a staggering $97.4 billion offer to acquire OpenAI, the organization behind ChatGPT. However, OpenAI’s board of directors swiftly rejected the bid. CEO Sam Altman responded succinctly on social media: "No, thanks." In a bold counter-move, Altman jokingly offered to buy Twitter (now X) for $9.74 billion—far less than the $44 billion Musk paid for it three years ago.
Musk vs. Altman: A Long-Standing Rivalry
Musk and Altman co-founded OpenAI in 2015 as a non-profit organization, but Musk left in 2018. Since then, their relationship has turned into a legal battle over OpenAI’s direction. Altman envisions OpenAI as a for-profit enterprise driving AI advancements, requiring substantial funding from investors. Musk, however, argues that this shift violates the organization’s original mission and contractual agreements. He insists that OpenAI should remain a non-profit research entity.
OpenAI’s Transformation and Microsoft’s Role
Following Musk’s departure, OpenAI formed a partnership with Microsoft, securing multi-billion-dollar investments. Microsoft remains OpenAI’s largest investor, alongside other major backers who have poured billions into the company. These investments are funneled through OpenAI’s for-profit arm, which Altman wants to make the organization’s core focus.
For OpenAI to complete this transformation, Altman must reach an agreement with the board overseeing the non-profit sector. According to The Wall Street Journal, Musk’s $97.4 billion bid effectively sets a baseline price—forcing OpenAI to match this figure to separate itself from its non-profit origins.
Musk’s Strategic Move
Industry analysts, including Axios, suggest Musk’s offer is a tactical maneuver to obstruct Altman’s plans. If OpenAI aims to remain independent and operate as a for-profit entity, it would need to secure an equivalent amount in funding. Alternatively, if Musk's bid were accepted, he could gain control over OpenAI’s non-profit division, potentially reshaping the company’s future.
With OpenAI at the center of the AI revolution, this high-stakes power struggle will determine the organization’s path forward. Stay tuned for further developments in this ongoing saga.
