Elon Musk’s OpenAI Takeover Bid Not Yet Seen by Board, Source Says
Elon Musk’s attempt to buy OpenAI, the company behind ChatGPT, has caused confusion as the board says it hasn’t received a formal offer. According to Reuters, Musk’s lawyer claims the $97.4 billion bid was sent to OpenAI’s legal team on Monday. However, a source close to OpenAI’s board said they hadn’t seen the offer by Tuesday afternoon.
OpenAI CEO Sam Altman dismissed the bid, calling it “ridiculous” and saying the company is not for sale. “It’s another one of his tactics to try to mess with us,” Altman told Reuters at an AI summit in Paris. He added that the board plans to reject the offer, even without formally reviewing it, to protect OpenAI’s mission.
Musk co-founded OpenAI with Altman in 2015 but left in 2018 over disagreements about the company’s direction. He later started his own AI company, xAI. Now, Musk is trying to block OpenAI’s plan to transition from a nonprofit to a for-profit company, which it says is necessary to raise funds for developing advanced AI models.
Reuters reports that OpenAI is in the process of raising $40 billion and is working on a complex transition to a for-profit structure. This involves valuing the nonprofit’s control over the for-profit arm, which could be complicated by Musk’s bid. Legal experts say regulators will need to ensure the nonprofit’s assets are sold at fair market value if the transition happens.
Delaware’s Attorney General is also reviewing OpenAI’s proposed changes to ensure they benefit the public, not private interests. Meanwhile, Musk’s bid has sparked debate about the future of AI development and the role of nonprofits in the industry.
The situation highlights the growing tensions between Musk and OpenAI as they compete to shape the future of artificial intelligence.
This report is based on information from Reuters, a trusted news source.