OpenAI Sale Offer Rejected; Musk Deems Altman "Swindler"
On Monday, OpenAI CEO Sam Altman declined an unsolicited $97.4 billion offer from investors led by Elon Musk to acquire the non-profit organization. The proposed valuation would significantly reduce OpenAI's current valuation.
CNBC reports that SoftBank plans to invest $40 billion in OpenAI at a valuation of $260 billion. Responding on X (formerly Twitter), Altman quipped, "no thank you, but we will buy Twitter for $9.74 billion if you want." Musk labeled Altman a "swindler" within minutes.
Musk and Altman co-founded OpenAI in 2015 as a non-profit but Musk later withdrew due to differences over the venture's direction. OpenAI has since partnered with Microsoft (MSFT), which has invested billions and gained access to its AI models while providing cloud computing services.
Altman is exploring turning OpenAI into a for-profit entity, which Musk is legally challenging. Musk claims his initial $45 million donation was contingent upon OpenAI remaining a non-profit.
Legal experts assert that OpenAI is obligated to obtain fair market value for its assets. Musk alleges that OpenAI and Microsoft have incentives to undervalue assets, prompting him to request a review by California's attorney general.
Musk's offer, if genuine, suggests that at least one party values OpenAI's assets at $97.4 billion. However, experts caution that the unpredictable nature of OpenAI's future, debt, unusual business structure, and pending litigation could impact its valuation.
Musk operates xAI, an OpenAI competitor, and has previously criticized OpenAI and its partners for alleged funding shortfalls. Altman denied these claims and invited Musk to visit a Texas facility under construction.