Sam Altman Faces $97.4 Billion Bid from Elon Musk
The bid has significant implications for OpenAI's existing fundraising efforts and its plans to convert to a for-profit structure. Musk's move is seen as a challenge to Altman's leadership and the company's future direction, and it may lead to a protracted battle over the control and mission of OpenAI.
Elon Musk has made a $97.4 billion bid to acquire OpenAI, a company he co-founded in 2015, in a move that could escalate tensions with CEO Sam Altman over the startup's future. The bid, led by Musk's AI startup xAI, is seen as a challenge to Altman's plans to transition OpenAI from a nonprofit to a for-profit entity.
Musk's bid is significantly lower than OpenAI's valuation of $157 billion in its last funding round, and the company is reportedly valued at $300 billion in talks for a further funding round. The bid is likely to face significant funding challenges, and it's unclear what Altman's response will be, as he has already made a joke about buying Twitter for $9.74 billion. Musk's attorney, Marc Toberoff, confirmed the bid, but Altman's response suggests he is not taking the offer seriously.
The bid is the latest development in a long-standing battle between Altman and Musk over the future of OpenAI. Musk has criticized OpenAI's plans to prioritize profit over public good and has sued the company, claiming it has betrayed its mission. If successful, Musk's bid would require him to raise significant funds, potentially by selling Tesla stock or using his stake in SpaceX as collateral.
The OpenAI board will consider the proposal and may favor a sale if the offer is increased. However, there are questions about the seriousness of Musk's intentions and whether the bid is genuine. A tech investor, Christie Pitts, is skeptical of Musk's motives, suggesting he may be trying to acquire a competitor. The outcome of the bid is uncertain, and it remains to be seen how Altman and the OpenAI board will respond to Musk's offer.
