Elon Musk Attempts to Acquire OpenAI with a $97.4 Billion Offer from Investor Consortium

Elon Musk Attempts to Acquire OpenAI with a $97.4 Billion Offer from Investor Consortium

This article is not intended as investment advice, and the author does not hold any positions in the stocks mentioned.

The Rising Tensions Between Musk and OpenAI

Elon Musk has recently intensified his rivalry with OpenAI, a leading organization in the artificial intelligence sector. This latest move could escalate tensions with Sam Altman, the CEO of OpenAI, who has often found himself at odds with Musk.

Musk’s Bold $97.4 Billion Buyout Proposal

According to the Wall Street Journal, Musk has made an unsolicited bid to acquire OpenAI through a coalition of investors, offering an eye-popping $97.4 billion. This bid comes at a pivotal time as OpenAI plans to transition from a non-profit model to a public benefit corporation (PBC).This shift will move the organization’s primary AI operations under the control of a for-profit division, while the non-profit arm will maintain a stake in the for-profit entity.

A History of Conflict: Musk and OpenAI

This offer is the latest chapter in a long-standing feud between Musk and Altman. In late 2024, Musk initiated legal action against OpenAI over its decision to change its structure to a PBC. He sought a preliminary injunction, claiming that this transition conflicted with OpenAI’s foundational mission of advancing human welfare.

Altman, in response, described Musk as a “bully”who prefers confrontational tactics. Interestingly, an open letter issued by OpenAI on December 13, 2024, pointed out that Musk himself proposed a for-profit model for OpenAI back in 2017 while he was a co-founder. The letter highlighted:

“When he didn’t get majority equity and full control, he walked away [in 2018] and told us we would fail.”

Future Implications of Musk’s Offer

Given the historical animosity between Musk and Altman, it remains uncertain how OpenAI will react to this latest buyout proposal. The dynamics of this rivalry may influence the response, but a favorable reception seems unlikely amidst the current tensions.

For ongoing updates and insights into this ongoing saga, check out the full article on Wccftech.

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