Elon Musk leads an offer to buy ChatGPT's parent company for $97.4 billion
Elon Musk, well-known as the co-founder of Tesla and SpaceX and the owner of X Holdings Corp., recently made headlines when he spearheaded a significant investment proposal. Musk is currently at the forefront of a group of investors who have put forward an offer to acquire OpenAI, the parent company of ChatGPT, for a staggering $97.4 billion.
The bid, if successful, has the potential to significantly influence the landscape of artificial intelligence in the years to come. Musk's involvement in this offer stems from his longstanding disagreements with Sam Altman, the CEO of OpenAI. Musk has raised legal concerns against both the company and Altman, alleging that OpenAI, originally positioned as a philanthropic venture, has deviated from its core principles by focusing on profit generation through its AI technologies.
Background of OpenAI's Structure
OpenAI functions as a nonprofit organization overseeing OpenAI LP, which operates as a for-profit entity within the broader organizational framework. Under Altman's leadership, the for-profit arm has propelled OpenAI from relative obscurity to a valuation of approximately $100 billion within a short span of time.
Reported initially by the Wall Street Journal, Musk's substantial investment in OpenAI could potentially grant him majority control over the company, positioning it as a significant competitor to his existing artificial intelligence venture, X.AI.
Statements from Involved Parties
Expressing the investors' perspective, Marc Toberoff, the attorney representing Musk and the investor group, emphasized the importance of OpenAI returning to its roots as an open-source, safety-focused entity. This move, according to Toberoff, aims to ensure fair compensation for the charity's relinquished control over groundbreaking technology.
In response to Musk's offer, Altman took to X to convey a succinct message, indicating a lack of interest in the proposal and suggesting a different course of action.
This story continues to unfold. Stay tuned for updates on this developing situation.
Note: The-CNN-Wire™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
Your browser is out of date and potentially vulnerable to security risks. We recommend switching to one of the following browsers:
Source
