Elon Musk’s consortium bid $97.4 billion to acquire the non-profit entity overseeing OpenAI, including ChatGPT, but their offer was rejected. This move by a billionaire aims to prevent the AI startup from becoming a commercial success, potentially impacting Musk’s xAI project established in 2023.
Elon Musk is interested in purchasing OpenAI.
Elon Musk’s consortium, which is headed by him, comprises his AI startup, xAI, along with other firms like Baron Capital Group and Emanuel Capital.
Sam Altman, CEO of OpenAI, stated that the company is not available for purchase, but would be willing to acquire Twitter for $9.74 billion.
Musk co-founded OpenAI with Altman in 2015 as a non-profit organization but departed before it became successful. In 2023, he established his own rival AI startup.
Offer is expected to raise tensions.
The proposal is expected to raise tensions regarding the future of ChatGPT. Musk filed a lawsuit against Altman and other executives in August 2024, alleging that they prioritized profit over the public good while developing the AI. In November, he sought a court order to stop OpenAI from transitioning to a for-profit entity.
The billionaire alleges that the founders initially asked him to support a non-profit dedicated to advancing AI for the betterment of humanity, but now they are more concerned with financial gain.
OpenAI is currently in the process of shifting from a non-profit organization to a for-profit one in order to secure adequate funding for advancing AI models.
The startup’s latest funding round valued it at $157 billion, solidifying its position as one of the world’s most valuable private companies.
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