Elon Musk Leads $97.4bn Bid for ChatGPT Maker OpenAI

Elon Musk, the billionaire behind Tesla, SpaceX, and X, is leading a group of investors in a $97.4 billion bid to acquire all assets of OpenAI, the firm behind ChatGPT. 

This unsolicited offer was submitted to OpenAI’s board of directors, aiming to take control of the company, which has been working towards transitioning from its non-profit roots. 

The Wall Street Journal first reported the news of the bid.

Musk, who co-founded OpenAI but left in 2019, has long been critical of the company’s direction under its current CEO, Sam Altman. 

Musk’s bid is backed by his new AI venture, xAI, alongside several high-profile investors, including Joe Lonsdale, co-founder of Palantir, and Ari Emanuel, CEO of entertainment company Endeavor. 

Marc Toberoff, the attorney representing Musk’s investor group, emphasised the importance of fairly compensating the charity for what it stands to lose as OpenAI moves towards a for-profit model.

“If OpenAI is set on becoming fully for-profit, it’s essential the charity is properly compensated for its leadership’s decision to take away control of such transformative technology,” said Toberoff.

The proposed acquisition could disrupt OpenAI’s ongoing plans to restructure by 2026. 

OpenAI has argued that restructuring is necessary to stay competitive in the fast-moving AI industry, and that remaining a non-profit would limit its ability to raise capital. 

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Altman, in response to Musk’s bid, was quick to reject the offer with a humorous twist. He posted on X (formerly Twitter), “No thank you, but we will buy X for $9.74 billion if you want,” referencing Musk’s 2022 purchase of Twitter for $44 billion. 

Musk responded by calling Altman a “Swindler.”

Musk’s rivalry with Altman has escalated in recent years. He initially filed a lawsuit against OpenAI over its restructuring plans, later dropped it, and then re-filed. 

Musk’s new AI company, xAI, positions itself as an open-source, safety-focused alternative to OpenAI, and he’s been vocal about his desire to bring OpenAI back to its original vision.

“At xAI, we live by the values OpenAI was supposed to follow. It’s time for OpenAI to return to being a force for good,” Musk said in a statement.

Whether Musk’s offer will be accepted remains to be seen, but his consortium has signalled they are prepared to increase their bid if necessary.