Elon Musk has made a bold $100 billion offer to acquire OpenAI, which has been rejected by CEO Sam Altman, highlighting their ongoing rivalry. Altman humorously countered with a low valuation for Musk’s platform, X. Musk, who acknowledges his initial investment in OpenAI, is critical of its profit-driven model. He has founded xAI and has taken legal actions against OpenAI. Analysts doubt the feasibility of Musk’s bid due to Microsoft’s stake in the company.
Musk’s Ambitious Bid for OpenAI
Tech mogul Elon Musk is making headlines with a staggering $100 billion offer to acquire OpenAI alongside a group of investors. This bold move has sparked a playful yet pointed response from OpenAI’s CEO, Sam Altman, who has a long-standing rivalry with Musk. The OpenAI board has firmly rejected Musk’s proposition, showcasing the tension between the two influential figures.
A Rivalry Fueled by Humor and Discontent
Valued at approximately three times Musk’s offer, OpenAI is a powerhouse in the artificial intelligence sector. In a witty comeback, Altman proposed a mere $9.74 billion for Musk’s social media platform, X, effectively poking fun at the billionaire’s ambitious bid. Their contentious relationship has been characterized by both admiration and criticism, as Altman acknowledges Musk’s early contributions to OpenAI while also labeling him a ‘bully’ in the tech industry.
Musk himself admits that without his initial $50 million investment, OpenAI may not have flourished as it has. However, since departing from the organization in 2018 after disputes, Musk has established his own AI venture, xAI, and has been vocal about his concerns over OpenAI’s shift from a non-profit to a profit-seeking entity.
In a notable critique, Musk equated OpenAI’s current business model to a conservation group transforming into a lumber mill, emphasizing his disappointment over the commercialization of what he believed should be a public good. His frustrations have even led to legal actions against the organization.
Meanwhile, OpenAI has sought to lift profit caps to secure further investments for AI research, a move that has drawn scrutiny from Musk. The tech landscape is further complicated by reports that former President Donald Trump has earmarked $500 billion for AI research in the United States, including collaborations involving OpenAI and the Japanese investment firm Softbank — a prospect that Musk has publicly dismissed as impractical.
As Musk’s acquisition attempt unfolds, analysts express skepticism about its feasibility, particularly due to Microsoft’s significant stake in OpenAI, which gives the tech giant substantial control over the company. Despite Musk’s recent advancements with xAI, the consensus remains that his ambitious offer may be more of a long shot than a feasible acquisition.