Musk Bids $97B to Take Control of OpenAI Amid AI Conflict

Elon Musk is leading a group of investors in a bid to take control of OpenAI, the artificial intelligence company that operates ChatGPT. This offer comes amid years of conflict between Musk and OpenAI CEO Sam Altman over the direction of the company, which Musk helped to found in 2015.

Musk's offer was earlier reported by the Wall Street Journal. In a post on social media, Altman responded, "[N]o thank you but we will buy twitter for $9.74 billion if you want," referring to the social media app Musk bought for $44 billion in 2022.

A History of Conflict

The offer from Musk stems from a long-standing dispute between him and Altman regarding OpenAI's direction. Musk, the world's richest person with a net worth of over $400 billion, sued Altman and OpenAI last year, alleging that the AI company had deviated from its initial mission to benefit the public.

OpenAI's Transformation

OpenAI is currently seeking to transform into a for-profit business, a decision it claims will enable the company to further its mission of ensuring that artificial intelligence technology "benefits all of humanity." OpenAI has also established a partnership with Microsoft, which has invested billions in the AI company and integrated OpenAI's GPT-4 technology into its software programs.

Musk's Vision for OpenAI

"At x.AI, we live by the values I was promised OpenAI would follow," Musk said in a statement, referring to the AI app developed by x.AI. "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."

The group of investors includes Musk's x.AI Corp.; Baron Capital Group; Valor Management; Altreides Management; Vy Fund III; Emanuel Capital Management; and Eight Partners VC, according to a statement from Marc Toberoff, the attorney representing the investors.

Funding Intentions

The funds from the $97.4 billion offer would be "used exclusively to further OpenAI, Inc.'s original charitable mission," the investor group stated. This suggests that the investors intend to use the acquired funds to support OpenAI's stated goals of advancing AI technology for the benefit of humanity.