OpenAI, the company behind the groundbreaking ChatGPT, continues to reject a $97.4 billion offer from a consortium of investors led by Elon Musk. While OpenAI is not publicly traded, it operates under a complex structure that merges both non-profit and for-profit arms. Musk, one of the co-founders, has stated his intention to steer OpenAI back to its non-profit roots, prioritizing the development of AI to benefit humanity.
However, the timing of his bid raises questions, especially considering that Musk also owns xAI, a direct competitor to OpenAI.
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Speaking to Axios, Sam Altman, OpenAI’s CEO, described Musk as a competitor unable to outpace OpenAI in the market, thus resorting to a bid “with total disregard for the mission.”
Despite Musk’s offer, the decision over OpenAI’s future isn’t solely in Altman’s hands. Altman, who also sits on the non-profit’s board, has made it clear he does not hold any stock in the company. His vision for OpenAI’s future involves transitioning to a fully for-profit model to attract more funding for AI research.
However, OpenAI’s board will ultimately decide, and if Musk raises his offer, they may be swayed. The current bid of $97.4 billion is far below OpenAI’s valuation of $157 billion from its most recent funding round in October. Recent talks suggest OpenAI’s value has soared to $300 billion.
Musk’s attorney, Marc Toberoff, stated that the consortium is open to increasing the bid. He also asserted that, as a co-founder and tech leader, Musk is the best candidate to protect and grow OpenAI’s technology.
Musk has been building other AI ventures too, including a collaboration with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to develop the Stargate Project—an ambitious $500 billion AI infrastructure initiative in the US.
The project, which was announced at the White House, has attracted attention as the “largest AI infrastructure project in history.” Despite this, Musk, who is a key advisor to former President Donald Trump, has claimed that the project does not have the financial backing it claims, though he has provided no details to back up the assertion.
With such high stakes, the unfolding drama over OpenAI’s future is far from over, and it’s clear that Musk’s bid is only the beginning of a complex and multifaceted competition in the AI space.
