DBT Bureau
Bengaluru, 11 February 2025
A group of investors, led by Elon Musk, is willing to pay as much as $97.4 billion to acquire OpenAI, which has been the cause of a legal fight with the company Musk helped establish. Musk, his AI startup xAI, and a collection of investment firms want to assume control of OpenAI and turn it back into its original incarnation as a nonprofit research lab, according to Musk’s attorney, Marc Toberoff.
The chief executive of OpenAI, Sam Altman, refused the offer on Musk’s platform X by jokingly saying, “no thank you but we will buy Twitter for $9.74 billion if you want.”
Musk and Altman, who co-founded OpenAI in 2015, have been in conflict over the company’s direction since Musk stepped down from the board in 2018. Musk, an early investor and board member, filed a lawsuit last year, accusing OpenAI of abandoning its nonprofit goals. Musk had invested about $45 million in the company from its founding until 2018, according to Toberoff.
Musk and OpenAI lawyers recently appeared in a California federal court, where Musk sought a court order to prevent OpenAI from turning into a for-profit company. The judge has yet to rule but expressed doubt over whether Musk would be harmed if OpenAI continues with its plans.
The judge also noted concerns over the relationship between OpenAI and its business partner, Microsoft. Further, he hinted that the case would be put to trial next year. Indeed, Musk is expected to testify on this case.
Investors included in Musk’s offer are Baron Capital Group, Valor Management, Atreides Management, Vy Fund, Emanuel Capital Management, and Eight Partners VC, besides Musk and xAI.
Toberoff said, “If OpenAI’s leadership decides to do so, then the nonprofit should be adequately compensated for technology and control being relinquished.” He also wrote to attorneys general for both California and Delaware, seeking their assurance that the sale of OpenAI’s assets be fair and through competitive bidding.
