ByElon Musk, having previously failed in legal efforts to influence OpenAI, is now leading a group of investors in a $97.4 billion bid to acquire the company. The Wall Street Journal reported today that a consortium of investors, led by Elon Musk, is attempting to purchase the nonprofit that controls OpenAI. Musk’s attorney, Marc Toberoff, presented the acquisition proposal to OpenAI’s board of directors today.
Musk’s investor consortium includes his own company, xAI, as well as Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC, and Ari Emanuel, CEO of the Hollywood company Endeavour. If the deal is successful, Musk might merge xAI with OpenAI.
“It’s time for OpenAI to return to the open-source, safety-focused force it once was. “We will make sure that happens,” Musk said in a statement.
OpenAI CEO Sam Altman countered the acquisition proposal by offering to buy Musk’s X (formerly known as Twitter) for approximately $9.74 billion (one-tenth of Musk’s proposal for OpenAI).
no thanks to you but we will buy Twitter for $9.74 billion if you want
Sam Altman (@sama) February 10, 2025
OpenAI Nonprofit’s board currently comprises independent directors Bret Taylor (Chair), Adam D’Angelo, Dr. Sue Desmond-Hellmann, Zico Kolter, Retired US Army General Paul M. Nakasone, Adebayo Ogunlessi, Nicole Seligman, Fidji Simo, and Larry Summers, in addition to OpenAI CEO Sam Altman. While Altman has already expressed his position regarding Musk’s acquisition proposal, the OpenAI Nonprofit board has not responded yet.
Last week, CNBC reported that Softbank plans to invest approximately $40 billion in OpenAI’s capped-profit arm at a $260 billion pre-money valuation and a $300 billion post-money valuation over the next 12 to 24 months.
In related news, last month, OpenAI announced plans to create AI infrastructure in the US on an unprecedented scale. SoftBank CEO Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison announced The Stargate Project, which will invest $500 billion over the next four years to create new AI infrastructure in the United States.
Original Image & Post: neowin
