Based on reports from the Wall Street Journal, a consortium of investors led by billionaire Elon Musk has made a $97.4 billion bid to take control of OpenAI, the artificial intelligence startup behind ChatGPT, marking a significant development in the ongoing power struggle between Musk and the company he co-founded.
Elon Musk’s $97B Bid
In a stunning move, a consortium led by tech mogul Elon Musk has put forward a staggering $97.4 billion offer to acquire control of the nonprofit entity overseeing OpenAI. This bold bid comes amidst an ongoing legal dispute between Musk and the AI company he co-founded, with the billionaire accusing OpenAI of straying from its original mission of benefiting humanity to pursue profits. The offer, if successful, could potentially reshape the landscape of artificial intelligence development and reignite Musk’s involvement with the creator of ChatGPT.
Musk’s History with OpenAI
Elon Musk’s relationship with OpenAI has been complex and tumultuous since its inception in 2015. Initially a co-founder and early supporter, Musk left OpenAI’s board in 2018 citing potential conflicts of interest with Tesla’s AI development. The rift between Musk and OpenAI widened as the company transitioned to a “capped-profit” model in 2019, a move that Musk later claimed violated the organization’s founding principles.
In response to OpenAI’s evolving direction, Musk launched his own AI venture, xAI, in 2023. This company reportedly reached a $50 billion valuation in just 16 months, showcasing Musk’s continued interest and influence in the AI sector. The rapid success of xAI and Musk’s ongoing criticisms of OpenAI’s practices have set the stage for the current power struggle, culminating in the recent $97.4 billion bid for control of his former brainchild.
Legal Battle Over Control
The legal clash intensified in August 2024 when Musk filed a lawsuit accusing OpenAI of abandoning its nonprofit mission in favor of profit-driven motives aligned with Microsoft’s interests. OpenAI countered by revealing communications suggesting Musk initially supported its for-profit transition but withdrew after failing to secure majority control. The company has since sought judicial dismissal of Musk’s request to block its conversion, arguing his claims are inconsistent with his past actions. This dispute underscores the broader tensions over governance and ethical priorities in AI development.
