OpenAI takeover bid by Elon Musk has been firmly rejected by CEO Sam Altman. The $97.4 billion offer, submitted by Musk and a consortium of investors, aimed to acquire all of OpenAI’s assets. However, Altman dismissed the proposal with a blunt response on social media.
Altman’s Swift Rejection
On Monday, Musk’s attorney, Marc Toberoff, confirmed that the takeover bid had been formally submitted to OpenAI’s board. Shortly after, Altman responded on Musk’s platform, X, saying: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Despite Altman’s rejection, OpenAI’s board still holds the authority to decide the company’s future. If the consortium increases its offer, the board could reconsider the deal. However, questions remain about whether Musk is serious about acquiring OpenAI or if this is part of the ongoing legal feud between the two tech leaders.
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A Longstanding Rivalry
Musk and Altman co-founded OpenAI in 2015 as a non-profit organization, aiming to develop AI for the benefit of humanity. However, Musk left in 2018, and since then, their relationship has deteriorated.
Altman is restructuring OpenAI into a for-profit company, arguing that substantial investment is necessary to develop cutting-edge AI models. Musk, on the other hand, claims this shift betrays OpenAI’s original mission.
Doubts Over Musk’s Intentions
Tech investor Christie Pitts expressed skepticism over Musk’s motives. She pointed out that Musk already owns xAI, a competitor structured as a for-profit company. “It’s fair to be suspicious, given his existing AI venture,” she said.
The $97.4 billion bid is also significantly lower than OpenAI’s $157 billion valuation from its last funding round. Reports indicate the company’s current valuation could reach $300 billion in upcoming investments. Musk’s attorney stated that the consortium is open to increasing the offer if necessary.
Competing AI Ambitions
While battling for OpenAI, Musk remains critical of The Stargate Project, a new AI infrastructure initiative backed by OpenAI, Oracle, and international investors. The project, valued at $500 billion, was announced at the White House by President Donald Trump, who called it “the largest AI infrastructure project in history.”
Despite his influence in AI, Musk has questioned whether Stargate’s investors have the financial backing to deliver on their promises. However, he has not provided evidence to support his claims.
What’s Next for OpenAI?
With OpenAI’s board yet to weigh in, the takeover bid is still in play. However, with Musk’s legal battles against OpenAI and Altman’s clear opposition, a sale seems unlikely in the near future. The tech industry is closely watching as the AI battle between these two giants continues to unfold.
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