Musk’s attorney, Marc Toberoff, confirmed that the bid for “all assets” was submitted to OpenAI’s board on Monday, marking a significant twist in the ongoing spat between Musk and OpenAI’s chief executive, Sam Altman.
OpenAI is widely recognised for driving artificial intelligence into the mainstream, attracting billions in investment. However, Musk has frequently criticised Altman’s leadership, particularly as OpenAI transitions into a for-profit entity.
Responding to the bid, Altman posted on Musk’s social media platform X: “no thank you but we will buy twitter for $9.74 billion if you want.”
Originally co-founded by Musk and Altman in 2015 as a non-profit, OpenAI has since moved towards a for-profit model. Musk argues that this shift contradicts its founding mission to develop AI for the benefit of humanity, while OpenAI maintains that such restructuring is necessary to fund advancements in AI technology.
Musk’s takeover bid is backed by his AI venture, xAI, alongside private equity firms such as Baron Capital Group and Valor Management.
In a statement, Musk reaffirmed his vision for OpenAI: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”
Industry experts remain sceptical about Musk’s motives. Christie Pitts, a technology investor at Panasonic Well in San Francisco, questioned his intentions, stating: “I think it’s fair to be pretty suspicious of this considering that he is a competitor which is structured as a for-profit company, so I think there’s more than meets the eye here.”
Despite Musk’s bid, OpenAI’s latest valuation stands significantly higher at $157 billion as of October 2023, with ongoing talks potentially pushing that figure to $300 billion. Toberoff stated that the consortium is “prepared to consider matching or exceeding” any competing offer.
OpenAI is also collaborating with US tech giant Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to build $500 billion worth of artificial intelligence infrastructure in the US. Dubbed The Stargate Project, the initiative was announced at the White House by President Donald Trump, who described it as “the largest AI infrastructure project by far in history” and emphasised its role in keeping the “future of technology” within the US.
Musk, despite being such a key advisor to Trump he has been dubbed America’s First Lady, has cast doubt on the project’s financial viability, claiming the consortium lacks the capital it has pledged, though he has provided no substantiating evidence for these assertions.