Proposed Acquisition of OpenAI: Elon Musk’s $97.4 Billion Bid
Elon Musk, along with a coalition of investors, has aimed to acquire OpenAI for an astonishing $97.4 billion, as reported by The Wall Street Journal. This offer targets the assets of the nonprofit entity responsible for managing OpenAI, the creator of ChatGPT. Concurrently, OpenAI is engaged in a capital-raising initiative intending to double its current market valuation.
A Personal Power Struggle in AI
The New York Times characterized this development as part of an ongoing “deeply personal rivalry over the direction of artificial intelligence” between Musk and Sam Altman, who is currently at the helm of OpenAI. Both individuals were instrumental in founding the organization; however, the board has since shown strong allegiance to Altman.
Public Exchanges Between Rivals
In a notable social media exchange, Altman clapped back at Musk by responding on X (formerly Twitter), saying: “No thank you but we will purchase Twitter for $9.74 billion if you’re interested,” which appeared to poke fun at various challenges faced by Twitter under Musk’s leadership. In response to this jab, Musk referred to Altman as a “Swindler.”
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
The Status and Response from OpenAI
An insider close to these developments stated that OpenAI has yet to evaluate this proposal seriously. The offer arises from a consortium that includes Vy Capital and Xai—a company founded by Musk—which positions itself against OpenAI’s own fundraising priorities.
The Current Valuation Landscape
Spearheaded by SoftBank—a major player based in Japan—the latest investment round valued OpenAI at around $300 billion, situating it among the most valuable private enterprises globally alongside other tech giants like SpaceX and ByteDance, which is known for its popular app TikTok.
Source | Via