7:47 pm - February 23, 2025
Elon Musk Makes a $97.4 Billion Bid for OpenAI Amid Ongoing Tensions
In a dramatic turn of events, Elon Musk, the billionaire entrepreneur and owner of X (formerly Twitter), has led a group in making a staggering $97.4 billion (£78.7 billion) bid to acquire OpenAI, the artificial intelligence startup he co-founded in 2015. This move comes just months after Musk sued OpenAI, escalating a longstanding feud with his former colleague, OpenAI CEO Sam Altman. The bid, backed by Musk’s rival AI company xAI, highlights the growing tensions between Musk and Altman, both of whom have played pivotal roles in shaping the AI landscape. This high-stakes battle not only reflects personal animosity but also raises questions about the future direction of AI development and the principles that should guide it.
The Founding and Evolution of OpenAI
OpenAI was originally launched in 2015 as a nonprofit organization, with the mission of developing artificial intelligence in a way that prioritized safety, transparency, and the greater good. Musk and Altman, both visionaries in their respective fields, joined forces to create an entity that would push the boundaries of AI research while ensuring that its benefits were shared widely. However, the dynamics shifted in late 2022 with the release of ChatGPT, a revolutionary AI chatbot that quickly gained widespread acclaim. The success of ChatGPT catapulted OpenAI into the spotlight, but it also prompted the company to reassess its business model. OpenAI has since begun transitioning to a for-profit entity, a decision that Musk has publicly criticized.
Musk’s Disapproval and the Bid to Reclaim OpenAI
Musk’s disagreement with OpenAI’s shift toward profitability is at the heart of his bid to buy the company. In a press release announcing the offer, Musk stated, “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.” This statement underscores Musk’s belief that OpenAI has strayed from its original principles and that he is the right person to steer it back on course. The bid is supported by xAI, Musk’s rival AI company, which could potentially merge with OpenAI if the deal goes through. This move not only reflects Musk’s ambition to reclaim control of a company he helped create but also signals his determination to shape the future of AI in accordance with his vision.
The Financial and Strategic Implications
The sheer scale of Musk’s bid—$97.4 billion—underscores the high stakes involved in this deal. OpenAI was last valued at $157 billion (£127 billion) in its most recent funding round in October 2023, making it one of the most valuable startups in the world. For Musk and his investors to pull off this acquisition, they would need to secure enormous funding, a feat that could prove challenging even for someone of Musk’s financial stature. Meanwhile, OpenAI CEO Sam Altman has responded to the bid with a mix of defiance and humor, tweeting, “no thank you but we will buy twitter for $9.74 billion if you want.” This public exchange highlights the personal and professional tensions between the two tech leaders.
The Legal Battle and Ongoing Feud
The bid is just the latest chapter in a saga that has been unfolding for years. Musk and Altman have been at odds since Musk resigned from OpenAI’s board in 2018, reportedly due to disagreements over the company’s direction. Things took a turn for the worse last year when Musk sued both OpenAI and Altman, accusing them of breaching a contract by pivoting toward profitability. Musk argues that OpenAI’s shift away from its nonprofit roots contradicts its initial pledge to develop AI responsibly and make it freely available. The lawsuit is currently making its way through a California federal court, with U.S. District Judge Yvonne Gonzalez Rogers considering Musk’s request for a court order to block OpenAI’s transition to a for-profit entity. While the judge has yet to rule on the matter, she has indicated that the case will proceed to a jury trial.
What’s at Stake?
The outcome of this high-profile battle could have far-reaching implications for the AI industry. On one hand, Musk’s vision for OpenAI as an open-source, safety-focused organization aligns with the original ideals of the company. On the other hand, Altman’s leadership has propelled OpenAI to unprecedented success, and its transition to a for-profit model could ensure its continued innovation and viability in a competitive market. As the legal and financial drama unfolds, the question remains: What kind of AI future do we want? Will it be guided by profit and competition, or by transparency, collaboration, and a commitment to the public good? The answer may depend on whether Musk succeeds in his bid to reclaim OpenAI and restore it to its founding principles. For now, the world watches as two tech titans clash over the future of artificial intelligence.