Elon Musk announcing his bid for OpenAI with a coalition of backers.

Elon Musk's Bold $97.4 Billion Bid for OpenAI's Nonprofit Arm

Elon Musk's Bold $97.4 Billion Bid to Acquire OpenAI's Nonprofit Arm

In a stunning twist to the ongoing battle in Silicon Valley's AI arena, Elon Musk has announced a groundbreaking bid of $97.4 billion to take control of OpenAI’s nonprofit division, as reported by The Wall Street Journal. This ambitious offer, presented to the board on Monday morning, has generated significant buzz within the tech community.

Who Is Behind the Bid?

Musk's proposal is backed by a formidable coalition that includes:

  • Musk's own AI venture, xAI
  • Valor Equity Partners, a prominent venture capital firm
  • Ari Emanuel, a well-known figure in Hollywood
  • 8VC, the investment firm co-founded by Palantir’s Joe Lonsdale

A Pivotal Moment for OpenAI

The timing of this bid is particularly crucial for OpenAI as CEO Sam Altman is managing multiple substantial projects:

  • Transitioning OpenAI into a for-profit entity
  • Securing $40 billion at an estimated $340 billion valuation
  • Initiating a staggering $500 billion AI infrastructure initiative

Musk's Intentions

For Musk, who co-founded OpenAI alongside Altman in 2015 before departing in 2019, this acquisition attempt signifies his most aggressive venture yet aimed at restoring what he perceives as OpenAI's diverged mission. In a statement relayed by his lawyer, Marc Toberoff, Musk expressed:

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”

Impacts on OpenAI's Future

This considerable offer adds a complex layer to OpenAI's planned for-profit conversion, with Musk's team asserting they will match or exceed any competitive offers that might arise. This scenario complicates negotiations between Altman and Microsoft, along with other stakeholders involved in equity distribution in the new structure.

The Response

In a light-hearted rebuttal to Musk's bid, Altman posted on social media platform X:

“No thank you but we will buy Twitter for $9.74 billion if you want.”
OpenAI referred to Altman's tweet when approached for comments regarding the bid. At the time of writing, Toberoff had not responded to inquiries seeking clarification.

This dramatic development underscores the intense rivalry and shifting dynamics in the tech industry as leaders like Musk push for a return to AI’s foundational principles.

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