Elon Musk and his posse of heavyweight investors are rattling the OpenAI cage with a $97.4 billion bid for the nonprofit helm of the company famed for creating ChatGPT, according to the Wall Street Journal.
Musk’s attorney, Marc Toberoff, confirmed the bid was submitted to OpenAI’s board, further widening the rift between Elon Musk and Sam Altman, his former co-founder-turned-rival, WSJ reports.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated, underscoring his grievances with Altman’s shift towards a for-profit structure, which he argues strays from OpenAI’s original mission.
The world’s richest person also shot out a tweet, taking a dig at Altman for saying he wasn’t interested in getting equity in OpenAI in a Congressional testimony, around the same time as WSJ report.
Altman, in his typical style, shot back on X, saying, “no thank you but we will buy Twitter for $9.74 billion if you want,” taking a swipe at Musk’s unsolicitated bid.
This high-stakes gambit arrives as Altman is attempting to morph OpenAI into a conventional for-profit company with plans to invest up to $500 billion into a joint venture dubbed Stargate.
This transformation has been fraught with its challenges, notably concerning how the nonprofit will be appraised and compensated, the Journal notes. If Musk’s bid succeeds, it could possibly set a precedent for who calls the shots in the new OpenAI landscape.
Altman and Musk co-founded OpenAI in 2015, but parted ways in 2019. Since then, the gloves have been off. Musk has accused OpenAI of colluding with Microsoft to corner the AI development market, prompting legal complaints on his end.
Conversely, OpenAI contends that Musk’s claims are overreaching and without merit. They’ve even released documents to suggest Musk was on board with the for-profit pivot until he couldn’t secure a controlling stake — a narrative Musk vehemently disputes.
Adding more flavor to the fire, Musk’s offer is supported by a medley of investors, including his AI venture, xAI, which could potentially merge with OpenAI if Musk’s deal goes through, WSJ notes.
Other backing comes from elites like Valor Equity Partners and 8VC, further indicating the financial clout behind Musk’s ambitions.
In the context of their rivalry, Musk’s move can be seen as a power play to potentially redirect a company they once both championed toward differing visions for AI’s future.