Elon Musk has offered $97.4 billion to buy the nonprofit that controls OpenAI, The Wall Street Journal reports (unpaywalled copy).
OpenAI CEO Sam Altman replied via X: "no thank you but we will buy twitter for $9.74 billion if you want."
Among the investors backing the deal there is Musk’s own artificial intelligence company xAI, which could merge with OpenAI following the deal.
Musk and Altman started OpenAI as a nonprofit in 2015, but Musk left before its success. Now, OpenAI aims to become a for-profit to fund advanced artificial intelligence (AI) development. OpenAI's valuation stands at $157 billion, with SoftBank possibly leading a $40 billion investment round.
While Musk has been a staunch supporter of President Donald Trump, he has criticized the $500 billion AI project Stargate announced by Trump, which involves OpenAI.
Last year, Musk sued Altman, arguing OpenAI shifted from its humanitarian focus to profit-making. He sought to block OpenAI's for-profit transition in court. Musk insists OpenAI should return to its original mission of open-source, safe AI.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement provided by his attorney Marc Toberoff. “We will make sure that happens.”
Throwing a wrench
Altman communicated to staff that the board sees no value in Musk's bid, Reuters reports. Musk's group includes xAI and other investors. If successful, xAI could merge with OpenAI. xAI recently raised $6 billion, valuing it at $40 billion.
This offer could complicate OpenAI's plans and affect how the nonprofit handles potential sales. "This (bid) is definitely throwing a wrench in things," said corporate governance expert Jonathan Macey as reported by Reuters. Analysts note this bid could force OpenAI's board to reconsider their strategy and funding, questioning if Musk's offer is better than SoftBank's.