Musk-led group makes $97.4bn bid for ChatGPT maker OpenAI ...
A consortium of investors led by Elon Musk has offered a staggering $97.4 billion to acquire OpenAI, the renowned creator of ChatGPT. The bid, spearheaded by the billionaire's attorney, Marc Toberoff, was officially submitted to the tech company's board on Monday.
This move marks the latest development in the ongoing feud between Musk, the world's wealthiest individual and a close associate of former US President Donald Trump, and OpenAI's CEO, Sam Altman, concerning the future direction of the startup at the forefront of the AI revolution.
In response to the acquisition proposal, Altman took to Musk's social media platform X, stating, "no thank you but we will buy Twitter for $9.74 billion if you want."
Recognized for its pivotal role in popularizing artificial intelligence tools and driving substantial investment in the industry, OpenAI was initially established as a non-profit organization in 2015 by Musk and Altman. However, tensions between the two escalated following Musk's departure from the company in 2018.
Altman is reportedly overseeing a transformation of OpenAI into a for-profit entity, a decision contested by Musk who believes it deviates from the company's original mandate of advancing AI for the betterment of humanity.
The bid to acquire OpenAI has garnered support from Musk's AI enterprise xAI, as well as various private equity firms such as Baron Capital Group and Valor Management. Musk emphasized, "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."
Although the $97.4 billion offer falls short of the company's $157 billion valuation from its previous funding round in October last year, discussions regarding additional funding rounds are rumored to potentially value OpenAI at a significant $300 billion.
Notably, Musk's attorney, Toberoff, affirmed that the investor group would be open to matching or surpassing any higher bids that may emerge. Describing Musk as the ideal candidate to safeguard and enhance OpenAI's technology, Toberoff expressed confidence in Musk's innovative prowess as a tech industry luminary.
In another bold move, the mind behind ChatGPT has joined forces with US tech titan Oracle, in conjunction with a Japanese investment entity and an Emirati sovereign wealth fund, to establish $500 billion worth of artificial intelligence infrastructure in the United States.
Unveiled at the White House by President Donald Trump, the collaborative initiative, dubbed The Stargate Project, has been hailed as "the largest AI infrastructure project by far in history," aimed at securing the future of technology within the US borders.
Despite serving as a prominent advisor to Trump, Musk has raised skepticism regarding the financial resources pledged for The Stargate Project, questioning the actual availability of the promised funds without providing substantial evidence to support his claims.
