Sam Altman rejects Elon Musk-led bid for OpenAI
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The news: OpenAI chief executive Sam Altman has rejected a bid by a consortium led by billionaire Elon Musk to buy out the non-profit entity that controls the owner of ChatGPT, according to media reports.
The numbers: Musk, who co-founded OpenAI, offered USD97.4 billion ($155.3 billion) for the non-profit’s assets, along with a group of investors, the Wall Street Journal reported. The offer was rejected by Altman in a post on Musk’s X social-media platform.
The context: The bid is backed by Musk’s own artificial intelligence startup xAI, which could merge with OpenAI following a deal, the WSJ report said. Other backers include Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, Joe Lonsdale’s 8VC and Ari Emanuel, through his investment fund, the report said, citing Marc Tobero, a lawyer representing the investors.
Musk and Altman have been locked in a feud for years over the direction that OpenAI has taken since its founding. Musk has alleged that OpenAI has abandoned its origins as a charity to benefit humanity.
Altman and Musk co-founded OpenAI in 2015 as a charity before Musk left in 2019 and Altman became chief executive. OpenAI is actively working to transition into a for-profit company, following billions of dollars in outside investment by Microsoft and others.
The sources: Wall Street Journal, Bloomberg, Sam Altman X post
