Elon Musk Makes $97.4B Bid to Acquire OpenAI's Controlling Entity
Elon Musk, the CEO of xAI and SpaceX, has made a bold move in his ongoing feud with OpenAI's CEO Sam Altman, submitting a $97.4 billion bid to acquire the controlling nonprofit entity of the AI company. This comes after Altman announced plans to transform OpenAI into a for-profit organization, a decision Musk contests.
Musk's takeover bid, backed by his AI company xAI and private equity firms like Baron Capital Group and Valor Management, challenges Altman's vision for OpenAI. Altman has dismissed Musk's offer, stating 'no thank you' on X. In response, Altman playfully suggested OpenAI could instead acquire Musk's social media platform, X.
The dispute between the two tech moguls has been brewing for some time. In November 2024, Musk filed a lawsuit against OpenAI and Microsoft, accusing them of anti-competitive practices in the AI sector. OpenAI maintains that shifting to a for-profit structure is crucial for attracting funding to advance its AI models. Musk, however, believes this move deviates from OpenAI's original goal. The takeover bid intensifies this disagreement and reignites debates over AI governance.
Musk's $97.4 billion bid for OpenAI's controlling nonprofit entity marks a significant escalation in his dispute with Altman. With no public support from major OpenAI investors for Musk's takeover attempt, the outcome remains uncertain. Meanwhile, OpenAI continues to assert the necessity of its for-profit shift, while Musk persists in his challenge to Altman's leadership.
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