Musk Makes $97.4 Billion Offer to Acquire OpenAI Amid Legal Dispute

An Elon Musk-led consortium is reportedly offering approximately $97.4 billion to acquire OpenAI, intensifying an ongoing legal conflict with the artificial intelligence company Musk once helped establish.

Restoring OpenAI’s Non-Profit Roots

This move is part of Musk’s concerted effort to regain control over the creator of ChatGPT and redirect it back to its original mission as a non-profit research lab dedicated to public benefit.

Musk’s Intentions Clarified by Attorney

According to Musk’s attorney Marc Toberoff, Musk and a coalition of investment firms are committed to taking over OpenAI to restore its non-profit status.

OpenAI CEO’s Response

In response to Musk’s bid, OpenAI CEO Sam Altman took to Musk’s social media platform, X, to explicitly reject the proposed acquisition, jokingly suggesting, “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk countered by labeling Altman a “swindler” and referring to him as “Scam Altman” in a separate post.

Board’s Position on the Acquisition

As reported by The Information, Altman also advised his staff that the company’s board of directors intends to convey clearly that there is no interest in Musk’s “alleged bid.”

Musk’s Vision for OpenAI

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens,” Musk stated on Monday, as reported by Reuters.

Legal Proceedings Intensify

The legal battle escalated last week as Musk and OpenAI’s legal teams confronted each other in federal court. The judge was asked to ponder Musk’s request for a court order that would block OpenAI from transitioning into a for-profit organization.

Judge’s Concerns

U.S. District Judge Yvonne Gonzalez Rogers remarked that it was a “stretch” for Musk to claim that he would incur irreparable harm if OpenAI transitioned without court intervention.

OpenAI’s Microsoft Partnership

Despite Musk’s attempts to impede the shift to a for-profit model, the judge expressed concerns regarding OpenAI’s partnership with Microsoft, which is a crucial component of the company’s business strategy.

Trial Proceedings Ahead

While Musk sought to block further transitions, Judge Gonzalez Rogers signaled that the case could proceed to trial as early as next year, where a jury will ultimately determine the outcome.

The Lawsuit’s Origins

Musk’s legal action against OpenAI began last year when he filed a lawsuit in California state court and subsequently moved it to federal court. He alleges that OpenAI has deviated from its founding principles as a non-profit research lab aimed at serving the public good.

Meta Joins the Lawsuit

In December, Mark Zuckerberg-led Meta also joined Musk’s lawsuit against OpenAI, adding another layer of complexity to the legal conflict.

Musk’s Financial Commitment

As per Musk’s attorney, the billionaire has invested approximately $45 million into OpenAI from its inception in 2015 until his resignation from the board in 2018.

The Genesis of OpenAI

Musk co-founded OpenAI with Altman in 2015, establishing the organization with the goal of developing artificial intelligence technologies that benefit humanity.

Widening Rift Between Musk and OpenAI

However, tensions have escalated since Musk’s departure from the organization in 2018. Significant disagreements have arisen regarding OpenAI’s shift toward a for-profit model, with Musk remaining a vocal critic.

Establishing xAI

In 2023, Musk took another step into the AI arena by launching his competing startup, xAI. This move has only deepened the rivalry between Musk’s company and OpenAI as both navigate the rapidly shifting landscape of artificial intelligence.

Conclusion

The situation remains fluid as both Elon Musk and OpenAI confront legal challenges and public scrutiny regarding their futures in the AI space. With potential implications for the industry at large, the outcome of this conflict will be closely watched by stakeholders around the globe.