Elon Musk had left OpenAI in 2022, when it launched its flagship chatbot, ChatGPT which revolutionised the global tech landscape. After leaving OpenAI, the billionaire launched his own AI start-up called xAI
Billionaire Elon Musk’s offer to buy ChatGPT-maker OpenAI for $97.4bn clashes with his lawsuit against the company, said Sam Altman’s artificial intelligence (AI) company. In its federal court filing, OpenAI said, “The offer contradicts his earlier lawsuit and it is an improper bid to undermine a competitor”. This is as per a Reuters report.
In 2015, Musk co-founded OpenAI with its CEO Sam Altman as a not-for-profit entity. However, the US-based AI giant decided to become a for-profit entity. Musk did not agree with the idea, hence sued the company in August 2024. He argued that OpenAI shouldn’t be for private gain.
Musk had left OpenAI in 2022, when it launched its flagship chatbot, ChatGPT which revolutionised the global tech landscape. After leaving OpenAI, the billionaire launched his own AI start-up called xAI.
The statement came in the backdrop of Musk-Altman clash over OpenAI buyout deal.
Originally, OpenAI’s founders approached Musk to fund a non-profit focused on developing AI to benefit humanity, but it is now focused on making money, the billionaire said in a lawsuit against Altman and the ChatGPT maker. In December, he even asked the judge to stop OpenAI from transitioning to a non-profit.
In response, OpenAI also said it will move to dismiss Musk’s claims against the company and the billionaire should be competing in the marketplace rather than the courtroom. The company’s corporate transition has become more critical, with its recent $6.6 billion fundraising round and an upcoming $25 billion round under discussion with SoftBank contingent on restructuring to eliminate non-profit control.
A consortium of investors led by Tesla chief has made a $97.4bn bid to buy OpenAI. According to Musk's attorney Marc Toberoff, this bid aims to prevent OpenAI from pivoting from a nonprofit entity to a for-profit. The group of investors wants to retake control of the tech firm and revert it to its original charitable mission as a nonprofit research lab.
The consortium includes Musk-owned xAI, Baron Capital Group, Valor Management, Atreides Management, Vy Fund, Emanuel Capital Management and Eight Partners VC.
OpenAI was valued at around $157bn during the last funding round, significantly higher than the bid. As per recent talks of investment, the tech firm is reportedly valued at $300bn. However, Toberoff said that the consortium would be "prepared to consider matching or exceeding" any potential higher bid.