Elon Musk attempted to gain control of OpenAI by offering $97.4 billion for its nonprofit structure, according to The Wall Street Journal. OpenAI's CEO, Sam Altman, rejected the offer, suggesting instead that Musk sell Twitter. Details below.
New Twist in the Conflict
On February 10, Musk and a group of investors made an official offer to OpenAI’s board. However, Altman responded on X:
"No, thanks. But if you want, we’ll buy Twitter for $9.74 billion."
Musk didn’t ignore this and posted a clip of Altman’s speech before the U.S. Congress, where he claimed not to own a stake in OpenAI. Musk captioned the video with "Scam Altman," implying dishonesty in Altman's actions.
Musk and Altman: Allies Turned Competitors
Musk and Altman co-founded OpenAI in 2015 as a nonprofit organization. However, in 2019, the company changed its structure, creating a for-profit division, OpenAI Global, LLC. It was at that point that Musk left the project, disagreeing with the new direction.
Since then, the conflict between him and OpenAI has continued. In August 2023, Musk sued the company and Altman, claiming they violated the promise of remaining a nonprofit. He demanded that OpenAI return to an "open and safe model" and stated he would do everything possible to make it happen.
Who Supports Musk
Musk’s offer is supported by his own AI company xAI, as well as investment funds Baron Capital, Vy Capital, and 8VC. Musk’s lawyer, Marc Toberoff, stated that the investors are willing to match or exceed any other offer for OpenAI.
He said that if OpenAI's leadership decided to become a fully commercial corporation, they must fairly compensate the nonprofit side for losing control over one of the most advanced technologies of our time.
OpenAI Attracts Billions in Investment
Meanwhile, OpenAI continues to grow rapidly. In October 2023, the company was valued at $157 billion, and in February, CNBC reported that SoftBank is in negotiations for a $40 billion deal with OpenAI, which now values the company at $260 billion.
Additionally, OpenAI is participating in the "Stargate" initiative announced by U.S. President Donald Trump, where the private sector is investing $500 billion in the development of AI infrastructure.
What’s Next
Despite Altman’s refusal, Musk and his investors seem determined to proceed. The ongoing battle for OpenAI could impact not only the future of the company but also the entire AI industry, determining who will control the development of cutting-edge AI technologies.
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