Elon Musk Proposes $97.4 Billion Bid to Take Over OpenAI

Elon Musk has made a bold move in the AI industry by offering $97.4 billion to acquire OpenAI’s nonprofit arm.  According to The Wall Street Journal, the offer was submitted to OpenAI’s board on Monday, backed by a coalition of investors, including Musk’s own AI company xAI, Valor Equity Partners, Hollywood executive Ari Emanuel, and Palantir co-founder Joe Lonsdale’s 8VC.  This proposal intensifies the ongoing rivalry between Musk and OpenAI, a company he co-founded in 2015 but left in 2019 due to disagreements over its direction. The timing of this bid is crucial, as OpenAI CEO Sam Altman is already managing major transitions, including restructuring the company into a for-profit entity, securing a $40 billion funding round at a $340 billion valuation, and planning a $500 billion AI infrastructure project.  Musk’s bid directly challenges OpenAI’s current direction, as he has accused the company of straying from its original mission of safe and open AI development. His lawsuit against OpenAI reflects these concerns, and his takeover attempt signals his intent to return the organization to its original principles. In a statement through his lawyer, Musk emphasized that OpenAI should once again prioritize open-source and safety-focused AI development.  His team has also indicated that they are willing to match or exceed any competing offers, putting additional pressure on Altman and OpenAI’s stakeholders.  This bid complicates OpenAI’s negotiations with Microsoft and other investors, who are already in discussions about the company’s new for-profit structure. Following Musk’s announcement, Altman responded on social media with a humorous remark, rejecting the offer and jokingly suggesting OpenAI would buy Twitter for $9.74 billion instead.  While the bid is unlikely to be accepted, it highlights the ongoing power struggle in the AI space and Musk’s determination to influence the industry’s future.