Elon Musk, the CEO of Tesla and founder of xAI, has led a consortium of investors in an unsolicited $97.4 billion bid to acquire OpenAI, the renowned AI research organization he co-founded in 2015. This move intensifies the ongoing discord between Musk and OpenAI’s current CEO, Sam Altman, over the organization’s direction and foundational principles.
The offer, submitted through Musk’s attorney, Marc Toberoff, aimed to revert OpenAI to its original mission as a non-profit research entity dedicated to open-source and safety-focused AI development. Musk expressed his intentions, stating, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.” The bid received backing from prominent investment firms, including Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC, as well as support from Musk’s AI venture, xAI. There were considerations that, if successful, xAI could merge with OpenAI to consolidate their efforts in AI advancement.
However, Sam Altman swiftly dismissed the proposal, responding on Musk’s social media platform, X (formerly known as Twitter), with a retort: “No thank you but we will buy Twitter for $9.74 billion if you want.” This remark not only declined the offer but also alluded to Musk’s 2022 acquisition of Twitter for $44 billion, a deal that has since faced scrutiny due to the platform’s subsequent devaluation.
The friction between Musk and Altman traces back to their joint establishment of OpenAI in 2015. Initially conceived as a non-profit organization with the mission of ensuring that artificial general intelligence (AGI) benefits all of humanity, OpenAI’s trajectory shifted over the years. Musk departed from the company’s board in 2018 following internal disagreements regarding its strategic direction. He has since been a vocal critic of OpenAI’s evolution, particularly its transition towards a for-profit model and its deepening partnership with tech giant Microsoft, which has invested billions into OpenAI and integrated its GPT-4 technology into various software offerings.
In 2024, Musk escalated his concerns by filing a lawsuit against OpenAI, alleging that the organization had strayed from its foundational non-profit objectives and was prioritizing profit over public welfare. The legal dispute further intensified when Musk amended the lawsuit to include Microsoft, accusing both entities of attempting to monopolize the generative AI market and stifle competition from ventures like his own xAI.
OpenAI, under Altman’s leadership, has defended its strategic decisions, asserting that the shift towards a for-profit structure is essential to attract the necessary capital for advanced AI research and development. The organization maintains that its core mission remains unchanged: to ensure that AGI benefits all of humanity. In response to Musk’s criticisms, OpenAI has suggested that his objections may stem from competitive motivations, especially given his active involvement in rival AI initiatives.
The public exchange between Musk and Altman has been marked by sharp remarks and mutual reproaches. Following Altman’s dismissal of the acquisition bid, Musk labeled him a “swindler” on social media, further fueling the contentious discourse. Altman, in turn, has characterized Musk’s actions as attempts to impede OpenAI’s progress, suggesting that such maneuvers are driven by insecurity and a desire to slow down a competing entity.
This high-profile dispute underscores the broader debate within the AI community regarding the ethical and organizational frameworks best suited for AI development. While Musk advocates for open-source methodologies and non-profit models to mitigate potential risks associated with AI, Altman and OpenAI argue that a for-profit approach is necessary to mobilize resources and talent at a scale that matches the challenges posed by advanced AI research.
As OpenAI continues its efforts to transition into a for-profit entity, the organization is reportedly seeking substantial investments to bolster its AI infrastructure. Discussions have surfaced about potential funding rounds, with figures suggesting valuations as high as $300 billion. These developments highlight the escalating financial stakes in the AI sector and the strategic maneuvers by leading tech figures to influence its trajectory.
In summary, Elon Musk’s $97.4 billion bid to acquire OpenAI has been unequivocally rejected by CEO Sam Altman, reflecting deep-seated disagreements over the organization’s mission and operational model. This episode not only accentuates the personal discord between two of the tech industry’s most prominent figures but also brings to the forefront critical discussions about the future of AI development, governance, and the ethical considerations that accompany the rapid advancement of this transformative technology.
