Elon Musk and a consortium of investors have made an unsolicited bid of $97.4 billion for a controlling interest in the non-profit that operates OpenAI, according to a new report from the Wall Street Journal.
Musk and his attorney did not immediately respond to questions from Gizmodo on Monday but told the Wall Street Journal that, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”
The move may throw a wrench in plans by OpenAI CEO Sam Altman to formally make OpenAI a for-profit entity. To say that Musk and Altman are enemies feels like a bit of an understatement at this point. The two men founded OpenAI together back in 2015 but Musk was pushed out in 2019 after he reportedly tried to take control of the AI company. And the two men have been in litigation ever since their feud spilled out in public over recent years.
OpenAI was founded as a non-profit but created a for-profit entity in 2019 under Altman to raise money with companies like Microsoft. And Musk claims trying to make OpenAI completely for-profit is a violation of its original mission. OpenAI has countered in court by showing off emails that indicated Musk was more than happy to abandon the AI company’s non-profit status before he left. OpenAI has previously said it would like to complete the transition into a for-profit entity by late 2026, but it’s not clear how Musk’s bid might gum up the works.
The bid for OpenAI is being backed by Musk’s AI company, Nevada-based xAI. If Musk’s bid is successful the two companies could be merged, the Journal reports. Musk’s statement on making OpenAI “return” to being open source and safety-focused notably doesn’t include a word about remaining a nonprofit.
Other investment partners, according to the Journal, include Valor Equity Partners, Baron Capital, Atreides Management, and Vy Capital. 8VC, a venture firm controlled by Palantir co-founder Joe Lonsdale, is also involved. Ari Emanuel, the brother of Democratic political power player Rahm Emanuel, is also involved, according to the Journal.
While Musk has arguably become the most powerful person in the country, having helped secure Donald Trump the White House in the November election, Altman has been doing his own deals to make sure he’s not cut out of the oligarchy shell game. The OpenAI CEO appeared at the White House on January 21, the day after Trump’s inauguration, to help announce the creation of Project Stargate, a much-hyped AI infrastructure project that will fund data centers and other necessary tech to make artificial intelligence tools work properly.
OpenAI didn’t immediately respond to a request for comment Monday. But we’re sure they’re not too happy about Musk’s bid. The question now is whether the OpenAI board can turn it down. The Journal notes that Musk’s attorney says they’re prepared to meet or exceed any other offers for OpenAI that may come forward. And while it’s not clear who else may bid for the company, you can bet other folks would certainly be interested in one of the hottest companies of recent years.
For what it’s worth, minutes after the WSJ’s report was published, Sam Altman tweeted: “no thank you but we will buy twitter for $9.74 billion if you want.”