Elon Musk stirred up a dispute between Openai and its CEO Sam Altman on Monday. The billionaire heads a group of investors that revealed they had put forth a $97.4 billion bid for “all assets” of the artificial intelligence company to Openai’s board of directors.
The startup behind ChatGpt is in the process of transitioning from its original non-commercial status. Openai also operates a for-profit subsidiary, and Musk’s unsolicited offer could complicate the company’s plans. Wall Street Journal first reported the proposed bid.
“If Sam Altman and the current Openai, Inc. board of directors are intending to fully focus on profit, it is crucial that the charity is adequately compensated for what its leadership is taking away from it. It’s about time,” stated Mark Toberov, a lawyer representing investors.
Altman quickly responded to Musk shortly after the news broke, stating, “Thank you, but I’ll buy Twitter for $9.74 billion if necessary.” Musk acquired Twitter for $44 billion in 2022 and rebranded it. Musk’s reply to the post was “Swindler.”
Musk co-founded Openai but left the company in 2019 to start his own AI company called Xai. There have been ongoing disagreements between him and Altman over the company’s direction. He sued Openai over its restructuring plan, dropped the lawsuit, and then reignited the conflict.
The bid is backed by Xai and several investment firms, including those managed by Joe Lonsdale, who co-founded Stealth Government contractor Palantir. Ari Emanuel, CEO of entertainment company Endeavor, also joined the group through his investment fund.
“At X.ai, we adhere to the values that Openai has committed to uphold. Grok has fostered open source. We respect the rights of content creators,” Musk stated. “It’s time for Openai to return to its roots of open-source, safety-focused power. We will ensure that happens.”
Toberoff informed the Wall Street Journal that Musk’s consortium of investors is prepared to match or exceed the value of any other potential bids.
Openai argues that the restructuring is crucial for the company’s sustainability and access to capital. They claim that sticking with the non-profit structure alone will not keep up with the highly competitive world of AI innovation. Openai anticipates the restructuring to be completed by 2026.
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Musk is a close associate of Donald Trump, whereas Altman met with the president and attended the inauguration. Trump has identified Openai as part of a group of AI companies collaborating on a $500 million deal named Stargate to invest in cutting-edge technology. Musk’s Xai is not included in this agreement.
Source: www.theguardian.com
