Elon Musk-Led Firm Makes $97.4B Bid for OpenAI: WSJ Report

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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Elon Musk, along with a group of investors, submitted a $97.4 billion bid to acquire OpenAI’s controlling nonprofit entity, according to a WSJ report on Monday.

This bid further escalates the long-standing conflict between Elon Musk and OpenAI’s CEO, Sam Altman, regarding the company’s strategic direction.

“No thank you, but we will buy Twitter for $9.74 billion if you want,” Altman wrote in an X post, responding to the offer.

Musk’s Past with OpenAI and His Concerns

Musk, who co-founded OpenAI in 2015 and left in 2019 over internal disagreements, has frequently criticized its transformation into a for-profit entity.

He argues that OpenAI’s shift prioritizes revenue generation over its original mission of benefiting humanity, an issue that has fueled legal conflicts between the parties.

Elon Musk’s AI firm, xAI, is leading the bid with financial support from Valor Equity Partners, 8VC, and Hollywood executive Ari Emanuel.

Under Altman’s leadership, OpenAI has moved toward a for-profit structure, aggressively seeking funding to expand its AI research.

Altman has defended the shift, arguing that substantial funding is essential for large-scale AI innovation.

As part of this effort, he announced a $500 billion investment in AI infrastructure through a joint venture, Stargate.

Musk’s Bid for OpenAI Sparks Uncertainty

Elon Musk’s takeover bid has introduced uncertainty over OpenAI’s strategic direction, potentially affecting its funding efforts and business alliances.

Musk’s offer signals an attempt to steer OpenAI back toward its founding principles of transparency and responsible AI research.

In response to the bid, Altman humorously suggested purchasing Twitter for a fraction of Musk’s offer, highlighting the ongoing tension between the two tech leaders.

This latest development adds another layer to the complex relationship between Musk and Altman, two prominent figures in the AI industry.

The outcome of Musk’s bid may reshape OpenAI’s trajectory and influence AI development on a global scale.

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