Elon Musk, the world’s richest man, has made a staggering $97.4 billion bid to gain control of OpenAI, the nonprofit behind ChatGPT. However, Musk’s offer comes with a major condition: OpenAI must abandon its plans to transition into a for-profit enterprise.
The proposal, reported by The Wall Street Journal, highlights the ongoing tension between Musk and OpenAI CEO Sam Altman. Musk’s lawyers stated that if OpenAI’s board agrees to halt its for-profit conversion, the billionaire will withdraw his bid.
Why Does Musk Want to Stop OpenAI’s For-Profit Shift?
OpenAI was founded as a nonprofit with a mission to advance digital intelligence for humanity. However, in 2019, it created a capped-profit subsidiary to attract investors while maintaining its core mission. Now, OpenAI plans to restructure into a Delaware-based public benefit corporation to raise more capital.
Musk, who co-founded OpenAI with Altman a decade ago, has long opposed the move toward profitability. He left the organization after his proposal to merge OpenAI with Tesla was rejected.
The Bad Blood Between Musk and Altman
The relationship between Musk and Altman has been strained for years. Musk has sued OpenAI over its partnership with Microsoft, and the two have traded barbs on social media.
- Altman’s Response: On X (formerly Twitter), Altman dismissed Musk’s offer, quipping, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
- Musk’s Reaction: Musk called Altman a “swindler” and criticized OpenAI’s direction.
What’s Next for OpenAI?
Musk’s bid complicates OpenAI’s plans, as it could force the board to reconsider the nonprofit’s valuation during the transition. However, Altman has already rejected the offer, leaving the future of OpenAI’s restructuring uncertain.
Key Takeaways
- Elon Musk’s $97.4 billion bid for OpenAI hinges on halting its for-profit transition.
- OpenAI’s shift to a public benefit corporation aims to raise more capital for AI development.
- The ongoing feud between Musk and Altman adds drama to the high-stakes negotiation.
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