In a significant development in Silicon Valley’s AI landscape, Elon Musk has announced a substantial bid of $97.4 billion to acquire OpenAI’s nonprofit division, as reported by The Wall Street Journal. The bid was submitted to the board on Monday morning.
This ambitious offer is backed by a coalition of influential partners, including Musk’s AI venture xAI, venture capital firm Valor Equity Partners, Hollywood executive Ari Emanuel, and Joe Lonsdale’s venture firm 8VC.
The timing of this bid is crucial for OpenAI, as CEO Sam Altman is currently managing numerous high-stakes initiatives: transitioning the organization to a for-profit model, seeking to raise $40 billion at a $340 billion valuation, and launching a $500 billion AI infrastructure project. Musk, who co-founded OpenAI alongside Altman in 2015 but departed in 2019, views this bid as a pivotal challenge to what he perceives as OpenAI’s deviation from its original mission to develop safe and transparent AI, a concern he is currently pursuing in a lawsuit against the company.
In a statement relayed through his lawyer Marc Toberoff, Musk emphasized, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will ensure that happens.” This bid complicates OpenAI’s transition to a for-profit status, especially as Musk’s group has committed to matching or surpassing any competing offers, adding pressure to Altman, who is already negotiating with Microsoft and other investors regarding equity in the new structure.
In response to the announcement, Altman humorously tweeted: “no thank you but we will buy Twitter for $9.74 billion if you want.” This light-hearted remark reflects the ongoing complexities and high stakes in the tech industry.
When approached for comment, OpenAI referenced Altman’s tweet. Toberoff has not yet responded to requests for further information.
