Musk Aims to Acquire OpenAI for $97.4 Billion
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In an era marked by fervent global competition in artificial intelligence (AI), Elon Musk, the world's wealthiest individual and a formidable force in tech innovation, has found himself once again at the center of a controversial stormOn February 10, as reported, Musk spearheaded a group of investors proposing a staggering acquisition offer of $97.4 billion for OpenAI, the organization he co-founded in 2015 alongside Sam Altman and othersThis significant development has been confirmed by Musk's attorney, Mark Tobelev, who stated that the formal offer has been submitted to the OpenAI board.
This acquisition proposal is not merely a business maneuver; it elevates the long-standing conflict between Musk and OpenAI's CEO, Sam Altman, to a boiling point while simultaneously casting a shadow of uncertainty over the future landscape of the global AI industry.
The roots of this disagreement can be traced back several yearsOpenAI was established with the noble intention of promoting open-source AI technology that benefits humanity as a wholeHowever, cracks in this foundation began to surface in 2018, when Musk sought majority ownership and control over the board, a request that Altman rebuffedThis clash was emblematic of a deeper ideological schism regarding the trajectory of AI development.
Musk advocated for a steadfast non-profit model, emphasizing the importance of open-source frameworks and safety measures in AI evolutionConversely, Altman had a vision that leaned towards commercial viability, favoring a shift towards a profit-driven model that he argued would attract the necessary capital for expanding AI technology.
This divergence in vision led to Musk's departure from OpenAI in 2018. Under Altman’s leadership, OpenAI transitioned from its original non-profit ethos into a "limited profit" organization and now appears to be on a path towards complete commercializationObserving this transformation, which Musk perceives as a betrayal of the organization’s foundational ideals, he could no longer remain a passive observer.
Further complicating matters, Musk filed for a preliminary injunction with the U.S
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Northern District Court of California in November 2024, accusing OpenAI of various misdeedsThese allegations ranged from blocking investors from backing competitive ventures, such as Musk's own project, xAI, to leveraging confidential competitive information through its partnership with MicrosoftMusk claimed OpenAI had deviated from its original governance structure, thereby reallocating key assets and intellectual property, all while engaging in self-serving practices counter to The organization’s public interest and startup mission.
His legal team argued that failing to grant the injunction could result in “irreparable harm,” with Musk positioning OpenAI as having devolved into Microsoft's "closed-source subsidiary."
However, legal battles tend to drag on endlesslyMusk’s concurrent acquisition bid suggests an attempt not just to intervene through the courts, but to apply his formidable financial muscle as a means of influence over OpenAI.
Analyzing Musk's motives, industry observers assert that while the stated purpose of the acquisition is to "restore OpenAI to its founding principles of open-source and safety," there are deeper, multifaceted intentions at play.
In 2023, Musk founded xAI and rolled out a large language model named GrokYet, so far, Grok has not achieved the market performance necessary to compete with OpenAI's flagship product, ChatGPTThe acquisition attempt could thus be interpreted as an effort by the world’s richest man to level up his AI portfolio, potentially facilitating a merger that could enable xAI to quickly close the technological gap with rivals like Google and Microsoft.
Nonetheless, realizing this acquisition will not be straightforwardSam Altman has responded skeptically to Musk's offerOn social media, he quipped, “No, thanksBut if you’re willing, we could spend $9.74 billion to buy Twitter,” a veiled jab at Musk’s previous acquisition of Twitter, highlighting that Musk's current offer is a mere 22% of what he paid for the social media platform
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