Sam Altman Rejects Elon Musk’s OpenAI Bid

A consortium led by Elon Musk recently submitted a $97.4 billion offer to acquire the non-profit that governs OpenAI. The consortium includes xAI and investment firms like Baron Capital.

Back And Forth

The bid seeks to reverse a shift by OpenAI to a capital-driven structure for AI research, which Musk has criticized. OpenAI CEO Sam Altman rejected the offer on February 11th, tweeting that he will buy X (formerly Twitter) for $9.74 billion instead.

Musk, who co-founded OpenAI but left over internal disagreements, argues the organization should return to its original mission of open research. Legal disputes have followed his concerns, including a lawsuit over the shift to profit-driven goals.

Musk Not Backing Down

OpenAI has sought many investments so far, with a recent valuation of $157 billion and discussions to raise it to $300 billion. Elon’s bid could complicate these efforts, as the board would have to balance financial gains against the organization’s original purpose.

Musk’s financial strategy also reportedly includes using his $165 billion stake in Tesla as collateral. Though Altman rejected the bid, OpenAI’s board is likely to review it, though it’s unclear how the non-profit’s goals would align with his for-profit, xAI.