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Altman Rejects Musk's $97.4 Billion OpenAI Takeover Bid Amidst Strategic Tensions
In a dramatic twist in the tech world, Elon Musk has proposed a staggering $97.4 billion takeover of OpenAI, the AI research lab he co-founded. This move marks a significant escalation in the ongoing rift between Musk and OpenAI, particularly with CEO Sam Altman. The bid, spearheaded by Musk’s AI company xAI, supported by heavyweight investors including Valor Equity Partners and Baron Capital, aims to pivot OpenAI back to its original ethos of being "the open-source, safety-focused force for good."
"Probably his whole life is from a position of insecurity"
— Bloomberg (@business) February 11, 2025
OpenAI CEO Sam Altman said the company is "not for sale" and Elon Musk is probably trying to delay its progress with an unsolicited bid for the AI firm https://t.co/CtKdqnQgws pic.twitter.com/N702QJP8JW
However, in a swift and terse response on X (formerly Twitter), OpenAI’s CEO Sam Altman dismissed Musk's proposal with a counter-offer to buy Twitter for $9.74 billion, highlighting the diminished value of the social media platform since Musk's acquisition. This exchange underscores the deepening divide over OpenAI's strategic direction and its transformation from a non-profit entity to a potential for-profit behemoth.
Legal analyst Rob Rosenberg of Telluride Legal Strategies noted the complexity and potential motivations behind Musk’s unsolicited bid. It appears to be an aggressive move to exert outside pressure on OpenAI during its critical transition phase and valuation processes. Critics, including Musk, have voiced concerns over OpenAI's partnership strategies, particularly its ties with Microsoft, labeling it as monopolistic behavior detrimental to competitors.
The transformation of OpenAI has attracted significant investment interest, with tech giants like Microsoft injecting $13 billion, raising alarms at the U.S. Federal Trade Commission about possible market dominance implications. Conversely, Japanese titan SoftBank is negotiating a potential $25 billion investment, poised to become OpenAI’s largest investor.
OpenAI's strategic dealings have also led to revised collaborations, such as the modified agreement with Microsoft allowing OpenAI to engage with other cloud-computing providers. This restructured deal aligns with a new $500 billion venture with SoftBank and Oracle to enhance cloud-computing infrastructure across the U.S., named Stargate.
As OpenAI navigates these complex investment and partnership dynamics, the tech world watches closely. The interactions between Musk and Altman not only influence OpenAI’s trajectory but also reflect broader ethical, competitive, and strategic debates within the burgeoning AI industry.
