Musk v Altman: top tech titans in the arms race for AI supremacy ...
Elon Musk's bold $97.4 billion bid for OpenAI's nonprofit assets has thrown a wrench in Sam Altman’s plan to convert the start-up into a for-profit entity. The "hostile takeover" bid, declared by Musk on Monday, has bust open a historic rift between the world's richest man and the OpenAI boss – and could shape the future of the world's most powerful technology.
The History of the Tech Titans' Partnership
Altman and Musk co-founded OpenAI in 2015 with the goal of developing artificial general intelligence (AGI) for the benefit of humanity. However, Musk left in 2018 after a power struggle, reportedly wanting full control or a merger with Tesla. OpenAI later claimed that Musk withdrew a promised $1 billion donation when he departed, citing the need for substantial funding to compete with Google's DeepMind.
Following Musk's exit, Altman set up a "capped-profit" subsidiary and secured investments from Microsoft. Musk, displeased with this move, launched xAI and sued OpenAI, alleging it had become a "closed-source de facto subsidiary of Microsoft." OpenAI denied these claims, stating that it never promised to open-source its technology, only to ensure AI benefits were widely shared.
Transition to a For-Profit Structure
By 2024, OpenAI was struggling for funding, and reports emerged that Altman planned to shift the company towards a for-profit structure. Although Musk sought a court order to prevent this, Altman officially unveiled his plan in December for OpenAI's for-profit arm to take control while reassuring the public that its non-profit division would continue focusing on AI for the greater good.
The Impact of Musk's Bid
Musk's $97.4 billion offer has disrupted Altman's plans for OpenAI, with experts divided on whether the bid will be accepted. While some believe OpenAI may not be able to ignore the bid due to financial credibility, others see it as a strategic challenge designed to force a higher valuation from Altman.
If Musk gains control of OpenAI, concerns arise about his growing influence in the tech industry. Sherif Elsayed-Ali from the Future of Technology Institute warned about power consolidation, especially as Musk already controls X (formerly Twitter).
Despite the challenges, Altman remains confident in OpenAI's mission, emphasizing the importance of considering the charity's goals in any decision-making process.
