On Feb 10, a consortium led by Elon Musk offered $97.4 billion to acquire the nonprofit controlling OpenAI, escalating tensions with OpenAI CEO Sam Altman. Musk co-founded OpenAI in 2015 but later left to establish the competing AI startup xAI in 2023.
Musk's bid aims to steer OpenAI back to its original nonprofit mission. Meanwhile, OpenAI is transitioning to a for-profit model to secure capital for AI model development. Musk opposed this move, filing a lawsuit alleging a prioritization of profit over societal benefit.
Altman rebuffed Musk's bid, stating OpenAI is not for sale. Musk's consortium, which includes xAI and investment firms, could potentially merge with OpenAI, disrupting OpenAI's valuation and conversion into a for-profit entity.
As discussions continue, observers warn of potential financial and fiduciary complexities for OpenAI, questioning the impact on ongoing fundraising efforts and the SoftBank deal. Funding for Musk's bid could involve leveraging Tesla holdings or loans against SpaceX stakes.