An investment group led by Elon Musk has submitted a $97.4 billion bid to acquire the non-profit entity overseeing OpenAI, escalating the conflict between Musk and the ChatGPT developer, as reported by the Wall Street Journal on Monday.
Musk’s legal counsel, Marc Toberoff, confirmed the bid’s submission to OpenAI’s board of directors.
“No thank you, but we will buy twitter for $9.74 billion if you want,” OpenAI chief Sam Altman wrote in a post on X, formerly Twitter, apparently responding to the offer.
Musk, who acquired X under its previous name for $44 billion in 2022, responded to the post with a single word: “Swindler.”
His attorney did not provide an immediate comment when contacted.
The CEO of Tesla and a close associate of former US President Donald Trump has been engaged in a prolonged dispute with Altman, having filed multiple lawsuits against the San Francisco-based OpenAI.
Musk co-founded OpenAI in 2015, which has since become the leading AI startup globally after his departure in 2018. In 2023, he established his own generative AI company, xAI.
OpenAI announced in a December blog post that it has developed a unique organizational structure: a for-profit entity governed by a non-profit, featuring a limited profit-sharing model for both investors and employees.
This transition aims to position the company as a Delaware Public Benefit Corporation, necessitating a careful balance of the interests of shareholders, stakeholders, and the public, moving away from its non-profit roots.
In early 2023, Musk founded xAI to establish a presence in the technology sector anticipated to transform daily life and work dynamics.
Although OpenAI ranks among the highest valued startups globally, it faces financial challenges due to the substantial costs associated with developing its advanced technologies.
In January, Trump announced a significant investment initiative to enhance AI infrastructure, backed by major players such as SoftBank, Oracle, and OpenAI.
This initiative, named Stargate, is projected to invest at least $500 billion in AI infrastructure across the United States, as stated by Trump during a White House event.
The announcement was attended by OpenAI co-founder and CEO Altman, SoftBank’s Masayoshi Son, and Oracle’s Larry Ellison.
However, Musk expressed skepticism regarding the project's funding, suggesting that the promised investment may not be available.
This marked a rare divergence between Musk, one of the wealthiest individuals globally, and Trump, especially considering Musk's significant financial support of $270 million for Trump's election campaign.