Elon Musk’s Team Launches $97.4 Billion Offer to Acquire ChatGPT Creator OpenAI

Sam Altman, the CEO of OpenAI, has turned down a whopping $97.4 billion takeover offer from a group of investors led by Elon Musk.

Musk’s lawyer, Marc Toberoff, confirmed that the bid for OpenAI’s assets was presented to the board.

This development adds another chapter to the ongoing conflict between Musk and Altman regarding the direction of OpenAI, a key player in the rapidly evolving field of AI.

In response, Altman humorously suggested on Musk’s platform X, “no thank you but we will buy Twitter for $9.74 billion if you want.”

Unlike major tech companies such as Meta or Microsoft, OpenAI is not publicly traded. It operates under a unique model that combines both nonprofit and for-profit elements.

Musk, who co-founded OpenAI with Altman in 2015, aims to steer it back to its nonprofit roots, focusing on AI that benefits humanity.

However, it is worth noting that Musk also runs a competing company, xAI.

Tech investor Christie Pitts expressed doubts about Musk’s intentions, saying, “It’s reasonable to be suspicious, especially since he has a competing for-profit company.”

Altman seems to share these concerns, stating that Musk is “a competitor who can’t beat us in the market” and is seeking to acquire OpenAI without regard for its mission.

Altman, who is also a board member of the nonprofit, has indicated a desire to shift OpenAI toward a fully for-profit model. He believes this will help secure more funding for AI research.

Nonetheless, the decision about OpenAI’s future involves the board’s input, which may consider a sale if a better offer comes along.

Musk’s offer of $97.4 billion is notably lower than the $157 billion valuation OpenAI received last October. Current discussions suggest a potential market value of $300 billion.

Mr. Toberoff stated that the consortium is ready to consider higher bids if they arise.

He emphasized that Musk, as a co-founder, is the ideal leader to nurture and expand OpenAI’s technology.

In addition, OpenAI is collaborating with Oracle and international investors to develop a substantial $500 billion AI infrastructure project in the U.S. called The Stargate Project. This was announced by President Trump, who claimed it would be the largest AI infrastructure initiative ever.

Musk, despite being an advisor to Trump, has voiced skepticism about whether the project has the funds it claims to have, although he’s provided no evidence to support this.