Michaela
Elon Musk, owner and executive chairman of X, and a group of investors have submitted a $97.4 billion bid to acquire the controlling nonprofit entity of OpenAI, challenging the company’s direction and reigniting debates over AI governance.
The Wall Street Journal reports that Musk and the investors submitted the multi-billion-dollar bid to OpenAI’s board of directors on February 10 in an effort to acquire the nonprofit entity.
Musk’s attorney, Marc Toberoff, confirmed that he submitted the bid seeking to acquire all of the tech company’s assets.
Musk’s AI company, xAI, along with private equity firms such as Baron Capital Group and Valor Management, is backing the takeover bid.
OpenAI CEO Sam Altman seemingly dismissed Musk’s $97.4 billion takeover bid with a curt “no thank you” in a post on X, Musk’s own platform. Adding a cheeky twist, Altman teased that OpenAI could buy X instead.
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In response to Altman, Musk posted a video of the OpenAI CEO’s 2023 congressional testimony, where Altman stated he holds no equity in the company, captioning it ‘Scam Altman.
Musk’s takeover bid intensifies the ongoing dispute between him and Altman over the company’s direction. The two co-founded OpenAI as a nonprofit in 2015, but their relationship has deteriorated since Musk’s departure in 2018.
Altman is reportedly transforming the company into a for-profit organization by dissolving its nonprofit board—a move Musk claims deviates from the company’s original goal of advancing AI for the benefit of humanity.
However, the AI company maintains that shifting to a for-profit structure is essential to attract the funding necessary for advancing its artificial intelligence models.
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OpenAI is recognized for its pivotal role in mainstreaming artificial intelligence tools and driving significant investment in the industry.
In November 2024, Musk filed a lawsuit against OpenAI and its key partner, Microsoft Corp., accusing them of engaging in anti-competitive practices that stifle competition in the AI sector.
The lawsuit claimed that OpenAI’s partnership with Microsoft had created an unfair market advantage, alleging that Microsoft’s substantial investment had granted it exclusive access to crucial AI technologies, effectively limiting competition in the industry.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
