Elon Musk is leading a group of investors who made an unsolicited $97.4 billion offer to acquire the nonprofit that controls OpenAI, the Wall Street Journal reported on Monday.
The bid is the latest twist in the ongoing feud between Musk and OpenAI CEO Sam Altman, who has been pushing to convert the company behind ChatGPT into a for-profit business. Musk co-founded OpenAI in 2015 alongside Altman and a handful of other executives, but Musk has vehemently opposed Altman’s plan to shift away from the company’s nonprofit status.
OpenAI referred to Altman’s X post about the matter, in which he says: “no thank you but we will buy twitter for $9.74 billion if you want”:
Musk replied: “Swindler.”
The X and Tesla boss sued Altman and another OpenAI founder last year over the move, saying they “betrayed” OpenAI’s founding principles.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement provided to WSJ by his attorney, Marc Toberoff, on Monday. “We will make sure that happens.”
The other investors tied to Musk’s bid include Endeavor CEO Ari Emanuel, Palantir co-founder Joe Lonsdale, Valor Equity Partners, Baron Capital, Atreides Management, and Vy Capital, per WSJ. Their bid was submitted to OpenAI’s board of directors, w
Musk, who stepped down from OpenAI’s board in 2018, has been critical of the company in recent years.
He joked it should change its name to “ClosedAI” in March 2024 due to its move away from its initial mission: providing open source AI technology that benefits everyone. And last September, the X owner shared his displeasure with OpenAI’s planned business restructuring.
“You can’t just convert a non-profit into a for-profit,” Musk posted. “That is illegal.”
OpenAI created a for-profit subsidiary a year after Musk’s departure, allowing it to raise money from Microsoft, its primary backer, and other investors. The company is currently aiming to raise funding at a $340 billion valuation; Bloomberg reported in September that Altman would end up with a 7% equity stake in OpenAI if it becomes a for-profit business, meaning his slice would be worth $23.8 billion if the company is valued at $340 billion.
