Elon Musk Bids $97.4B For OpenAI, Altman Jokes, SoftBank Piles In
- This topic has 2 replies, 1 voice, and was last updated 3 days ago by
.
-
Topic
-
Elon Musk, alongside a consortium of investors, has made an audacious $97.4 billion bid to acquire the nonprofit arm controlling OpenAI, the organisation behind ChatGPT and other groundbreaking AI technologies.
This offer, first reported by The Wall Street Journal, has sparked significant intrigue and controversy within the tech and investment communities.
Musk’s group includes Vy Capital, his AI-focused venture xAI, and prominent figures such as Hollywood mogul Ari Emanuel.
The proposal underscores Musk’s ongoing rivalry with OpenAI CEO Sam Altman, with whom he parted ways in 2018 over governance disagreements
Altman quickly dismissed the offer with a tongue-in-cheek response on X (formerly Twitter), quipping, “No thank you, but we will purchase Twitter for $9.74 billion if you’re interested.”
Musk fired back, calling Altman a “swindler,” further fuelling the public spectacle surrounding their strained relationship.
OpenAI has yet to formally respond to the bid, though insiders suggest the nonprofit board has not reviewed the offer in detail.
Musk’s bid comes at a time when OpenAI is experiencing unprecedented growth and attention.
The company recently secured a $40 billion investment commitment from Japan’s SoftBank, which values OpenAI at approximately $300 billion post-money.
This valuation has more than doubled since October 2024, when OpenAI was appraised at $157 billion.
The SoftBank deal, set to unfold over the next 12 to 24 months, would make the Japanese conglomerate OpenAI’s largest investor, surpassing Microsoft’s $14 billion stake.
SoftBank’s funding aims to accelerate OpenAI’s development of Artificial General Intelligence (AGI) and support collaborative projects like Stargate, an initiative intended to enhance AI infrastructure in the United States.
Stargate alone is projected to require $500 billion in funding over its lifecycle.
These investments reflect the growing recognition of AI as a transformative force across industries, with OpenAI positioned as a leader in this rapidly evolving space.
The timing of Musk’s offer raises questions about his intentions.
Some analysts speculate that Musk’s move is less about acquiring OpenAI and more about complicating its governance structure and valuation ahead of its transition into a for-profit model.
By proposing such a high valuation for the nonprofit arm of OpenAI, Musk could force its board to reassess how it values its stake in the for-profit entity—a move that could disrupt ongoing funding negotiations.
Despite Musk’s bold manoeuvre, many see SoftBank’s investment as a more credible endorsement of OpenAI’s long-term potential.
The Japanese firm’s commitment highlights confidence in OpenAI’s ability to maintain its leadership in generative AI amid fierce competition from rivals like Google, Amazon, Anthropic, and Musk’s own xAI.
Is Musk’s Offer Serious?
Opinions are divided on whether Musk genuinely intends to acquire OpenAI or if this is merely an attempt to undermine Altman and disrupt the company’s trajectory.
While some view the offer as a strategic play aimed at influencing OpenAI’s valuation and governance decisions, others believe it reflects Musk’s broader ambition to dominate the AI landscape.
What Does This Mean For Investors?
For investors, these developments highlight both the immense potential of AI technologies and the volatility surrounding key players like OpenAI.
While SoftBank’s $40 billion investment signals confidence in OpenAI’s future, Musk’s bid introduces uncertainty that could impact valuations and strategic planning.
Ultimately, whether Musk’s offer is accepted or dismissed outright remains to be seen.
However, it underscores the high stakes involved in controlling one of the most influential organisations shaping the future of artificial intelligence.
