Elon Musk’s $97.4 Billion Bid for OpenAI Rejected by Sam Altman

Musk Makes a Bold Offer

Elon Musk has once again stirred the AI world by leading a $97.4 billion(R1.79 trillion) bid to acquire OpenAI. The billionaire, along with a group of investors, aimed to take control of the nonprofit entity that oversees OpenAI. However, OpenAI’s CEO, Sam Altman, swiftly rejected the offer, making it clear that OpenAI is not for sale.

Musk, who co-founded OpenAI in 2015 before parting ways in 2019, has been openly critical of the company’s shift toward a for-profit model. His latest move intensifies an ongoing battle with Altman over OpenAI’s future direction.

Altman’s Response: ‘No Thank You’

In a direct and dismissive response to Musk’s bid, Altman posted on X (formerly Twitter), “no thank you but we will buy twitter for $9.74bn(R179 billion) if you want.” This sharp reply not only rejected Musk’s offer but also took a jab at his controversial $44 billion(R811 billion) acquisition of Twitter in 2022, now rebranded as X.

Altman later reassured OpenAI staff that the board has no intention of entertaining Musk’s proposal. “We are not for sale,” he reiterated in an interview with Axios.

The Investors Behind Musk’s Bid

Musk’s consortium includes his AI startup xAI, Baron Capital Group, Emanuel Capital, and other major investors. According to reports, xAI could merge with OpenAI if the deal were to go through.

Musk’s lawyer, Marc Toberoff, defended the bid, arguing that if OpenAI is determined to become a fully for-profit entity, it should compensate the nonprofit organization fairly. “Control over the most transformative technology of our time is at stake,” he said.

Musk’s History with OpenAI

Musk originally helped fund OpenAI as a nonprofit dedicated to developing AI for the benefit of humanity. However, he left in 2019 due to disagreements over its direction. He has since sued OpenAI, accusing it of prioritizing profit over public good.

His AI startup, xAI, recently raised $6 billion in funding and is valued at $40 billion. Despite this, experts believe that acquiring OpenAI would require Musk to secure additional financing, either by selling Tesla shares or leveraging his stake in SpaceX.

What’s Next for OpenAI?

OpenAI is currently valued at approximately $157 billion(R2.89 trillion) , making it one of the most valuable private companies. Reports suggest that SoftBank is in talks to lead a funding round that could push OpenAI’s valuation to $300 billion(R5.52 trillion).

While Musk’s bid has been rejected, analysts believe it could complicate OpenAI’s fundraising efforts and its transition into a for-profit structure. Some experts argue that OpenAI’s board has a fiduciary duty to consider all serious offers, even those from rivals like Musk.

For now, the battle between Musk and OpenAI continues, and the AI industry will be watching closely to see what moves come next.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com