Elon Musk Makes $97.4 Billion Bid for OpenAI, Sparking New Chapter in Complex Relationship

Elon Musk Makes $97.4 Billion Bid for OpenAI

Elon Musk, CEO of Tesla and SpaceX, has made a $97.4 billion bid to acquire the assets of OpenAI, the artificial intelligence research and development company he co-founded in 2015. This move marks the latest chapter in a complex relationship between Musk and OpenAI, which has been strained by disagreements over the company's direction and mission.

In response to Musk's offer, OpenAI CEO Sam Altman took to Twitter to express his disapproval, stating that OpenAI would not accept the bid and instead offered to purchase Twitter for $9.74 billion. This playful jab highlights the ongoing tension between the two tech leaders.

Musk's consortium includes Vy Capital, Xai (his AI company), Hollywood power broker Ari Emanuel, and other investors. The offer comes as OpenAI is finalizing a $40 billion funding deal that would significantly increase its valuation. However, this unsolicited bid could disrupt those plans.

The new funding round, led by SoftBank, is expected to value OpenAI at $300 billion, placing it among the most valuable private companies globally. This would put OpenAI on par with Musk's SpaceX and ByteDance, the parent company of TikTok.

Musk and Altman have clashed publicly before. In August 2023, Musk filed a lawsuit against OpenAI, accusing the company of prioritizing profits over its original mission of advancing AI for the benefit of humanity. A US federal judge has ruled that parts of the lawsuit may go to trial, requiring Musk to testify in court.

Despite co-founding OpenAI, Musk left the company before it took off and subsequently founded the competing AI startup xAI in 2023. This further fueled the rivalry between the two tech entrepreneurs.

In 2024, during the early days of Donald Trump's presidency, a joint venture called Stargate was announced. This partnership between OpenAI, Oracle, and SoftBank aimed to invest $500 billion in AI infrastructure. Musk criticized the project, claiming they lacked the necessary funds. Altman defended the project and invited Musk to visit an AI development site in Texas.

The ongoing saga between Musk and OpenAI highlights the complex dynamics within the AI industry, where competition, ambition, and differing visions collide. It remains to be seen how this latest bid will play out and what the future holds for OpenAI and its relationship with Elon Musk.