Musk Proposes $97.4 Billion Acquisition of OpenAI
In a bold move, Elon Musk has initiated a staggering $97.4 billion proposal aimed at seizing control of OpenAI. According to reports from The Wall Street Journal, Musk’s xAI is leading a consortium of investors that has presented an unsolicited acquisition offer to OpenAI’s board this past Monday. The intention is to acquire the nonprofit entity overseeing OpenAI’s commercial subsidiary.
OpenAI Responds with Humor
In response to inquiries regarding the acquisition bid, an OpenAI representative directed Engadget towards a post made on X (formerly Twitter) by CEO Sam Altman. In this post, Altman quipped, ”No thank you but we will buy Twitter for $9.74 billion if you want,” referencing the social media platform owned by Musk.
Musk emphasized his vision for transforming OpenAI back into its roots as an open-source and safety-oriented organization in comments relayed through his legal counsel to The Journal. He stated, “It’s time for OpenAI to return to being the altruistic force it once was, and we are committed to making that happen.”
OpenAI Corporate Structure
The Viability of Musk’s Bid
The seriousness and potential success of Musk’s proposal remain uncertain given that OpenAI operates under a unique nonprofit framework—a structure that insiders like Sam Altman aim to maintain as they distance themselves from conventional profit-driven models. This distinctive setup could serve as a protective barrier against such overtures from investors like Musk.
If OpenAI were strictly classified as a for-profit entity with standard shares traded publicly, Musk’s financial overture would likely instigate what is termed in corporate governance as a Revlon moment—wherein directors might be compelled by law to accept the highest bidder’s offer in order to optimize shareholder value.
Musk Critiques Altman’s Response
Musk did not take kindly to Altman’s light-hearted retort; he expressed his discontent by mockingly referring to him as “Swindler” followed by labeling him “Scam Altman,” underscoring their ongoing rivalry.
This emerging confrontation between Mega Tech titans raises questions about ownership dynamics within AI development and may have broader implications across the quickly evolving technological landscape.
