OpenAI Offer and Valuation in Flux
OpenAI CEO Sam Altman has declined a $97.4 billion offer from investors led by Elon Musk. The offer, reported by The Wall Street Journal, would have significantly reduced OpenAI's valuation.
SoftBank plans to invest $40 billion in OpenAI at a valuation of $260 billion, according to CNBC. Altman responded to Musk's offer on X, formerly Twitter, sarcastically suggesting buying Twitter for $9.74 billion. Musk called Altman a "swindler."
Musk and Altman co-founded OpenAI in 2015 as a nonprofit, but Musk departed due to disagreements. OpenAI has since partnered with Microsoft, gaining access to its AI models and cloud computing services.
Altman aims to make OpenAI for-profit, which Musk is suing to prevent. Musk claims he donated $45 million to OpenAI with the condition that it remain nonprofit. Legal experts maintain that OpenAI must receive fair market value for its assets.
Musk's $97.4 billion offer, if genuine, suggests an estimate of the assets' worth. However, legal complexities, including uncertain future growth, debt, and litigation, could impact the valuation.
Musk's xAI is an OpenAI competitor. Musk has previously criticized OpenAI's partnership with SoftBank and Oracle for their Stargate Project.
Altman dismissed Musk's claims, inviting him to visit a Texas construction site.
Follow @alexiskweed and @DanielHowley for more updates on this developing story.