Musk launches $100 Billion Bid for OpenAI

Elon Musk's group has made a surprise bid of nearly $100 billion for OpenAI, escalating his ongoing feud with the AI company and its CEO, Sam Altman. The $97.4 billion offer, made through a consortium of investors, aims to acquire "all assets" of OpenAI, the creator of ChatGPT. This move could disrupt OpenAI's plans to transition away from its non-profit roots, a restructuring Musk has publicly opposed.

Altman responded on X (formerly Twitter), declining the offer and jokingly suggesting he'd buy X for $9.74 billion instead. Musk, who previously owned Twitter, called Altman a "Swindler" in response.

Musk, a former OpenAI co-founder who left in 2019 to start his own AI venture, xAI, has clashed with Altman over OpenAI's direction. He has even sued OpenAI regarding its restructuring, both filing and withdrawing the lawsuit before refiling it again.

The bid is supported by xAI and several investment firms, including one led by Palantir co-founder Joe Lonsdale, and another involving Ari Emanuel, CEO of Endeavor. Musk stated that xAI embodies the values he believed OpenAI once held, emphasizing open-source technology and respect for content creators. He aims to return OpenAI to its original mission of open-source, safety-focused AI development. The investors' attorney, Marc Toberoff, indicated they are prepared to outbid any competing offers.

OpenAI argues that its restructuring is crucial for long-term viability and attracting necessary capital, claiming that maintaining its non-profit status would hinder its ability to compete in the rapidly evolving AI landscape. The company aims to complete its restructuring by 2026.

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