A group of investors, led by billionaire Elon Musk, has officially submitted a takeover bid for OpenAI, valued at over AED 358 billion ($97.5 billion), according to multiple media reports. The bid comes as OpenAI transitions into a for-profit entity, a move that Sam Altman and the OpenAI team hadn’t originally planned for. Musk, who had previously filed a lawsuit against OpenAI over this shift, is attempting to reverse the company’s direction.
The Musk OpenAI Takeover Bid: Key Details
The news about Musk’s bid was confirmed by his lawyer, Marc Toberoff, who spoke with The Wall Street Journal. Although the bid has been submitted, OpenAI is not currently for sale. Elon Musk, a co-founder of OpenAI in 2015, left the company before it gained global prominence. Under the leadership of Sam Altman, OpenAI has become one of the world's leading AI companies.
Musk’s bid coincides with his attempts to stop OpenAI’s transition into a for-profit model, which he argues goes against the original vision. When OpenAI was founded, it was intended to be an open-source, non-profit organization, and Musk believes this shift contradicts the agreement made with him and others at the time. Toberoff stated, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” reflecting Musk’s stance on the matter.
Backlash from Sam Altman
Musk’s unsolicited bid has led to strong reactions from Sam Altman, OpenAI’s CEO, who took to social media to reject the offer. In a post on X (formerly Twitter), Altman bluntly stated, “No thank you,” while jokingly adding that OpenAI would instead "buy Twitter" for $9.75 billion. This public rejection highlights the ongoing tension between the two prominent figures in the tech world.
Despite Musk's legal actions and his takeover bid, Altman has informed his staff that the OpenAI board has no interest in Musk's offer. Recently, the relationship between Musk and Altman has been marked by verbal exchanges and social media spats. Musk has also been outspoken in his criticism of "Project Stargate," a massive $500 billion venture involving OpenAI, SoftBank, Oracle, and the UAE’s MGX, led by former US President Donald Trump. Musk even accused Altman of being a “swindler.”
Musk's Role in the AI Industry
Elon Musk’s involvement in AI goes beyond his relationship with OpenAI. Musk has his own AI company, xAI, which offers the Grok AI model integrated with the X platform. Despite his personal stake in the AI industry, Musk has continued to target OpenAI, expressing concerns over the company’s increasing commercial focus and its impact on AI development.
OpenAI’s Valuation and Funding
Musk’s takeover bid values OpenAI at $97.5 billion, but OpenAI’s latest funding round has put the company’s value at around $157 billion. This significant difference highlights the high stakes involved in the battle for control over one of the most influential AI companies in the world.
With Musk’s bid and lawsuit still in play, the future of OpenAI remains uncertain, and it’s clear that this ongoing power struggle will continue to dominate the AI landscape in the months ahead.
