A consortium led by Elon Musk has reportedly offered $97.4 billion to acquire OpenAI, the non-profit organization behind ChatGPT and other leading AI technologies, Al Jazeera reports.
The offer comes months after Musk filed a lawsuit against the AI startup, seeking to prevent its transition to a for-profit entity.
The bid, revealed on Monday, could escalate existing tensions between Musk and OpenAI CEO Sam Altman over the direction and future of the company. In response to the offer, Altman posted on X:
“No thank you but we will buy twitter for $9.74 billion if you want.”
Musk and OpenAI are currently engaged in a legal dispute. Musk has publicly criticized a $500 billion OpenAI-led project, dubbed “Stargate” and announced at the White House, suggesting that the investors involved lack the necessary funding.
Neither OpenAI, Musk, his lawyer Marc Toberoff, nor OpenAI backer Microsoft have immediately responded to requests for comment.
The Wall Street Journal, which first reported the offer, stated that Musk’s AI company, xAI, is backing the bid and could potentially merge with OpenAI if the deal is successful.
The potential acquisition raises significant financial considerations. Even without accounting for antitrust implications, Musk and his consortium would need to raise substantial capital to finance the deal.
OpenAI was last valued at $157 billion in its October funding round, solidifying its position as one of the most valuable private companies globally. SoftBank Group is reportedly in discussions to lead a funding round of up to $40 billion in OpenAI, at a valuation of $300 billion, including the new funds.
Musk co-founded OpenAI with Altman in 2015, but later departed before the company’s significant growth. In 2023, he founded xAI, a competing AI startup.
OpenAI is currently seeking to transition from a non-profit to a for-profit organization, arguing that this change is necessary to secure the capital needed to develop cutting-edge AI models.
