Elon Musk, leading a consortium of investors, has proposed a $97.4 billion acquisition of OpenAI, the artificial intelligence company he co-founded. The offer aims to revert OpenAI to its original nonprofit mission. However, OpenAI’s CEO, Sam Altman, swiftly declined the proposal, suggesting instead that his company could purchase Musk’s platform, X (formerly Twitter), for $9.74 billion. Musk acquired Twitter in 2022 for $44 billion.
This development intensifies the ongoing legal dispute between Musk and OpenAI. Musk has previously sued the company, alleging it has strayed from its founding nonprofit objectives, and that he will be irreparably harmed if U.S. District Judge Yvonne Gonzalez Rogers doesn’t step in. She called this claim a “stretch,” but allowed the case to proceed to trial.
The friction between Musk and Altman dates back to 2018 when Musk resigned from OpenAI’s board. He has since criticized the company’s direction and its partnership with Microsoft. In response, Musk launched his own AI venture, xAI, positioning it as a competitor in the rapidly evolving AI industry.
