War of words as Elon Musk-led group makes $155 billion bid for ChatGPT owner OpenAI
By David Swan
A consortium of investors led by billionaire Elon Musk is offering $US97.4 billion ($155 billion) to buy the nonprofit that controls artificial intelligence start-up OpenAI.
The offer intensifies a longstanding battle between OpenAI chief executive Sam Altman and Musk over the future of the start-up behind ChatGPT. The Wall Street Journal first reported the offer.
Elon Musk (left) cofounded OpenAI with Sam Altman in 2015, but left before the company took off.Credit: Bloomberg, AP
What is OpenAI?
OpenAI is a non-profit that created and owns ChatGPT, the wildly popular AI chatbot used by millions of users globally including in Australia. The company is currently worth an estimated $US260 billion ($414 billion) and is reportedly close to finalising a $US40 billion investment from Japanese investment giant SoftBank.
OpenAI’s original mission, established when it was founded as a non-profit in 2015, was to “develop artificial general intelligence safely and for the benefit of humanity”.
OpenAI is now trying to transition into a for-profit company, a move it says is required to secure the capital needed for developing the best artificial intelligence models.
Why does Elon Musk want to buy it?
Musk, the world’s richest person, has said that he wants OpenAI to return to its non-profit roots.
Musk’s attorney, Marc Toberoff, said he submitted the bid to OpenAI’s board on Monday.
OpenAI could merge with Musk’s xAI if the bid succeeds.Credit: AP
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” the Wall Street Journal cited Musk as saying in a statement provided by Toberoff. “We will make sure that happens.”
The bid is being backed by Musk’s AI company xAI, which could merge with OpenAI following a deal, the Wall Street Journal reported.
Musk co-founded OpenAI with Altman in 2015, but left before the company took off. He later founded the competing AI startup xAI in 2023.
Musk’s lawsuit against OpenAI and Altman says the founders originally approached him to fund a nonprofit focused on developing AI to benefit humanity, but that it was now focused on making money.
Musk’s takeover bid could be viewed as an opportunistic move designed to hoard more control over the AI sector, which is fast becoming one of the most lucrative and fast-moving industries globally.
Why is Sam Altman refusing to sell?
Altman promptly posted on X in response to Musk’s offer: “No thank you but we will buy twitter for $9.74 billion if you want.”
Musk then replied to the OpenAI chief on X calling him a “Swindler,” and in a reply to a different user, labelled him “Scam Altman”.
Musk’s offer of $US97.4 billion is far below OpenAI’s current estimated valuation of $US260 billion, likely making the decision rather straightforward for Altman and other OpenAI shareholders.
Musk and Altman are also already embroiled in an ongoing lawsuit. Musk criticised a $US500 billion OpenAI-led project called Stargate, announced with great fanfare at the White House just after President Donald Trump returned to office, suggesting the investors involved lacked the funding for the project.
OpenAI, Musk, Toberoff and OpenAI-backer Microsoft did not immediately respond to requests for comment.
With Reuters
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