Elon Musk has launched a $97.4 billion bid to acquire OpenAI, the artificial intelligence company he co-founded, marking a dramatic escalation in his ongoing dispute with the ChatGPT maker.
The takeover attempt comes as Musk, who co-founded OpenAI with Sam Altman in 2015, remains locked in a legal battle with the company over its transition from a non-profit to a for-profit model.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a press release announcing the bid. “We will make sure that happens.”
The Wall Street Journal reports that Musk’s artificial intelligence company xAI is backing the offer, with potential plans to merge with OpenAI following a successful acquisition. The bid represents a significant discount to OpenAI’s most recent valuation of $157 billion from October 2023.
Altman, OpenAI’s chief executive, responded dismissively to the offer on X, writing: “no thank you but we will buy twitter for $9.74 billion if you want.” Musk acquired Twitter, now X, for $44 billion in 2022.
The tensions between Musk and Altman, which began after Musk’s departure from OpenAI’s board in 2018, recently played out in a California federal court. Musk’s lawsuit alleges OpenAI breached its original mission by prioritizing profit over its commitment to developing AI responsibly and making it freely available.
U.S. District Judge Yvonne Gonzalez Rogers is currently considering Musk’s request for a court order to block OpenAI’s for-profit transition, while indicating the case could proceed to a jury trial.
OpenAI maintains that its shift to a for-profit model is necessary to fund the development of advanced AI models.
