Elon Musk, the tech magnate behind Tesla and SpaceX, is reportedly spearheading an ambitious $97.4 billion offer to acquire control of OpenAI, the company renowned for developing ChatGPT. The bid, according to the Wall Street Journal, marks the latest chapter in Musk’s ongoing rivalry with OpenAI CEO Sam Altman.
Details of the Bid
Musk’s attorney, Marc Toberoff, submitted the offer to OpenAI’s board of directors, as reported by the Journal. However, Altman appeared to dismiss the bid in a post on X (formerly Twitter), quipping, “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk, who purchased X in 2022 for $44 billion, responded tersely with, “Swindler.”
This public exchange underscores the tense relationship between Musk and Altman, who have clashed on multiple occasions. Musk, who co-founded OpenAI in 2015 but departed in 2018, has filed several lawsuits against the San Francisco-based AI company, further fueling their feud.
OpenAI’s Evolution and Musk’s Ambitions
OpenAI, a leading player in artificial intelligence, transitioned into a capped-profit structure to balance shareholder interests with public benefit. This unique model, detailed in a December blog post, aims to ensure sustainable innovation while generating returns for investors.
Since leaving OpenAI, Musk has pursued his own AI ventures. In 2023, he launched xAI, a generative AI startup intended to rival OpenAI’s capabilities. Musk has frequently criticized OpenAI’s operational costs and direction, especially its pivot away from its original nonprofit status.
Trump’s Stargate Project and AI Infrastructure
Musk’s bid also intersects with broader developments in AI infrastructure. In January, former U.S. President Donald Trump announced the Stargate initiative, a $500 billion investment in AI infrastructure. This venture, backed by SoftBank, Oracle, and OpenAI, aims to bolster America’s position in the AI race.
Notably, Musk voiced skepticism about the Stargate project, suggesting that the promised funding might not materialize. This criticism highlighted a rare divergence between Musk and Trump, despite the billionaire’s significant financial contributions to Trump’s political campaigns.
A Clash of Titans
As Musk vies for control of OpenAI, the battle symbolizes the growing stakes in the AI industry. With OpenAI valued among the world’s top startups despite its high operational costs, Musk’s bid reflects his determination to shape the future of AI development.
The outcome of this bid remains uncertain, but it is clear that the rivalry between Musk and Altman continues to drive headlines and debates in the tech world.
