Elon Musk wants to buy OpenAI for close to $100B, backed by investors

1 hr ago

Listen

Lauren Taylor Anchor

By Lauren Taylor (Anchor), Kalé Carey (Reporter), Harry Fogle (Video Editor)

Elon Musk is leading a $97.4 billion bid to take control of OpenAI. He’s calling for OpenAI to refocus on safety and openness, countering CEO Sam Altman’s vision for growth through partnerships.
Musk’s bid is supported by his AI company, xAI, along with other investors.
OpenAI is valued at $157 billion as of October 2024, with new investments potentially pushing it beyond $300 billion.

Full Story

Tech mogul Elon Musk is leading a group of investors in a $97.4 billion bid to take control of OpenAI, the nonprofit company behind ChatGPT. The move has reignited tensions between Musk and OpenAI’s CEO, Sam Altman.

Bias Distribution Powered by Ground News™

Musk, backed by his artificial intelligence company xAI and other investors, said he aims to restore OpenAI to its roots as an open-source, safety-focused company.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

Altman’s vision for OpenAI’s future

Altman is working to transform the company into a for-profit business. He is also focused on partnering with other AI leaders for Stargate, a new AI-driven initiative spearheaded by the Trump administration.

Altman took to Musk’s platform, X, to respond to the bid, saying, “No thank you, but we’ll buy Twitter for $9.74 billion if you want,” referring to Musk’s $44 billion acquisition of the social media platform in 2022.

OpenAI’s growth and start

Altman and Musk’s relationship dates back to 2015 when they co-founded OpenAI as a nonprofit organization. Musk left the company in 2019, and Altman took over as CEO. Since then, OpenAI has dominated the generative AI space, making significant technological advancements.

However, Musk has been vocal about his concerns with the company’s shift toward profitability. Last year, he filed a lawsuit claiming OpenAI violated its nonprofit mission by generating revenue through a subsidiary. The company has since partnered with Microsoft, one of its largest investors, to continue developing AI, and just last week, SoftBank announced at least a $15 billion investment into OpenAI.

As of October 2024, OpenAI is valued at $157 billion. However, with the new round of funding, that number could exceed $300 billion.

In January, Musk’s attorney called on the attorneys general in Delaware and California to open the bidding process for OpenAI.

Tags: SoftBank, Elon Musk, Donald Trump, Tech, Microsoft, OpenAI, Sam Altman, Artificial Intelligence, Technology, ChatGPT

[Lauren Taylor]

ELON MUSK LEADS A PACK OF INVESTORS, MAKING A HEFTY BID TO TAKE CONTROL OF A RESEARCH COMPANY PUSHING THE LIMITS OF ARTIFICIAL INTELLIGENCE.

MUSK WANTS OPEN A-I–THE NONPROFIT BEHIND CHATGPT–FOR 97 POINT FOUR BILLION DOLLARS, REIGNITING THE BATTLE WITH THE CEO SAM ALTMAN.

ALTMAN’S PUSHING TO TRANSFORM THE COMPANY INTO A FOR-PROFIT BUSINESS, AIMING TO TEAM UP WITH OTHER A-I GIANTS IN A PROJECT TRUMP LAUNCHED CALLED STARGATE.

THROUGH HIS ATTORNEY, MUSK SAYS “IT’S TIME FOR OPEN AI TO RETURN TO THE OPEN-SOURCE, SAFETY-FOCUSED FORCE FOR GOOD IT ONCE WAS.”

THE UNEXPECTED BID IS BOLSTERED BY MUSKS’S ARTIFICIAL INTELLIGENCE COMPANY X-AI AND OTHER INVESTORS.

ALTMAN RESPONDED ON MUSK’S PLATFORM, X, SAYING ‘NO THANK YOU BUT WE WILL BUY TWITTER IF YOU WANT.’ A DIRECT REFERENCE TO MUSK ASSUMING OWNERSHIP OF THE SOCIAL MEDIA SITE AFTER BUYING IT FOR 44 BILLION DOLLARS IN 2022.

ALTMAN AND MUSK AREN’T NEW TO EACH OTHER—THEY CO-FOUNDED OPEN A-I IN 2015 AS A CHARITABLE ORGANIZATION. FOUR YEARS LATER, MUSK STEPPED AWAY, AND ALTMAN TOOK THE REINS AS CEO.

THE GENERATIVE A-I COMPANY GIANT HAS DOMINATED THE INDUSTRY OVER THE YEARS WHILE INVESTING IN THE LATEST INFRASTRUCTURE TO WORK ON THE FUTURE OF ARTIFICIAL INTELLIGENCE.

JUST LAST YEAR, MUSK FILED A LAWSUIT CLAIMING OPEN A-I WAS VIOLATING ITS ORIGINAL MISSION AS A NONPROFIT BY USING A SECONDARY SECTION TO GENERATE MONEY.

THE COMPANY HAS PARTNERED WITH MICROSOFT, ONE OF ITS LARGEST INVESTORS, TO PUSH A-I DEVELOPMENT FORWARD…

AND LAST WEEK, SOFTBANK–ANOTHER TECH COMPANY–IS EXPECTED TO INVEST MORE THAN 15 BILLION DOLLARS INTO OPEN A-I.

AS OF OCTOBER OF 2024, THE COMPANY IS VALUED AT 157 BILLION BUT WITH THE NEW ROUND OF FUNDING–VALUE COULD JUMP PAST 300 BILLION.

IN JANUARY, MUSK’S ATTORNEY CALLED ON THE ATTORNEYS GENERAL IN DELAWARE AND CALIFORNIA TO OPEN BIDDING FOR THE COMPANY

FOR STRAIGHT ARROW NEWS, I’M LAUREN TAYLOR.