TL;DR
- Elon Musk & Sam Altman’s conflict intensified after Musk offered 97.4 billion dollars for all assets of OpenAI.
- Altman publicly refused saying he would buy Twitter instead.
Elon Musk intensified his conflict with OpenAI and its CEO, Sam Altman, on Monday. The billionaire is at the forefront of a group of investors that revealed it has made a $97.4 billion offer for “all assets” of the artificial intelligence firm to OpenAI’s board.
The startup, known for its ChatGPT platform, has been attempting to transition from its initial non-profit model. OpenAI also has a for-profit division, and Musk’s unexpected proposal may disrupt the company’s ongoing restructuring efforts. The Wall Street Journal was the first to report on the bid.
Marc Toberoff, the attorney representing the investors, stated, “Should Sam Altman and the current Board of Directors of OpenAI, Inc. pursue a transition to a fully for-profit entity, it is essential that the charitable organization receives appropriate compensation for the control over the groundbreaking technology that its leadership is relinquishing.”
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Altman shared his thoughts on X shortly after the announcement, stating, “No thank you but we will buy Twitter for $9.74 billion if you want.” Musk, who acquired Twitter in 2022 for $44 billion and subsequently rebranded it as X, replied to Altman’s comment with the word “Swindler.”
Musk, a co-founder of OpenAI, departed from the organization in 2019 to establish his own AI venture, xAI. In recent years, he has engaged in disputes with Altman regarding the company’s strategic direction. Last year, he initiated a lawsuit against OpenAI concerning its restructuring plans, only to withdraw it and later refile.
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The acquisition proposal is supported by xAI and various investment firms, including one led by Joe Lonsdale, a co-founder of the secretive government contractor Palantir. Additionally, Ari Emanuel, CEO of the entertainment firm Endeavor, has joined the consortium through his investment fund.
At x.AI, we adhere to the principles that were promised to me regarding OpenAI’s mission. We have made Grok available as open source and uphold the rights of content creators, Musk stated. “It is crucial for OpenAI to revert to its original commitment to open-source development and a safety-oriented approach for the greater good. We are dedicated to ensuring this occurs.”
Toberoff informed the Wall Street Journal that Musk’s group of investors is prepared to match or exceed any competing offers for OpenAI that may emerge.
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OpenAI has asserted that its restructuring is vital for the company’s sustainability and for securing necessary capital. The organization has indicated that maintaining its current non-profit structure would hinder its ability to compete in the fast-evolving AI landscape. OpenAI aims to complete the restructuring by 2026.
Despite Musk’s strong alliance with Donald Trump, Altman has also engaged with the president and was present at his inauguration. Trump selected OpenAI to join a consortium of AI firms involved in a $500 billion initiative known as Stargate, aimed at investing in the rapidly evolving technology. Notably, Musk’s xAI is excluded from this agreement.
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