A group led by Elon Musk has reportedly bid US$97.4 billion to buy OpenAI’s parent non-profit, escalating the feud between Musk and OpenAI.
Musk co-founded OpenAI with Sam Altman in 2015. Since Musk left the company, he has filed several suits alleging OpenAI has stifled artificial intelligence competition with the help of financial backer Microsoft.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” said Musk in a statement. “We will make sure that happens.”
Altman quickly rejected the bid. “no thank you but we will buy twitter for $9.74 billion if you want,” wrote Altman in response on Musk-owned platform X.
Musk’s AI company, xAI, is a backer of the bid. Musk listed xAI as a co-plaintiff in a previous suit, arguing OpenAI told investors not to fund xAI.
Valor Equity Partners, Baron Capital, and Palantir co-founder Joe Lonsdale’s 8VC are among the other investors supporting Musk’s bid.
OpenAI is valued at around US$157 billion. SoftBank is reportedly in talks to invest $15-25 billion as part of a new partnership.
According to Toberoff, Musk’s consortium is prepared to match or outbid other investors.
Musk has frequently criticised OpenAI’s ongoing conversion into a for-profit company. “If Sam Altman and the present OpenAI Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time,” said Musk’s attorney Marc Toberoff about the bid.
OpenAI has said it will complete its conversion by late 2026.
Altman and Musk also clashed over OpenAI’s Stargate project last month, with Musk claiming OpenAI did not have the funding to invest up to US$500 billion into American AI infrastructure as promised.
