OpenAI CEO Rejects Elon Musk's $97.4 Billion Acquisition Offer
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 offer represents a significant discount on OpenAI's valuation, with CNBC reporting that SoftBank plans to invest $20 billion in the company at a $240 billion valuation.
"No thank you, but we will buy Twitter for $9.74 billion if you want," Altman tweeted in response, referring to Musk's purchase of the social media platform for $44 billion. Musk responded by calling Altman a "swindler."
Musk and Altman co-founded OpenAI in 2015, but Musk later distanced himself due to disagreements over the company's direction. OpenAI has since partnered with Microsoft, which invested billions and gained access to its AI models while providing cloud computing services.
Altman's efforts to transform OpenAI into a for-profit entity face legal challenges from Musk, who claims that his initial $45 million investment was contingent on OpenAI remaining a non-profit. Legal experts argue that OpenAI is obligated to receive fair market value for its assets.
Musk's offer, if genuine, could establish a valuation benchmark for the organization. However, experts caution that factors such as OpenAI's future growth prospects, debt, unique business structure, and pending litigation may significantly impact the valuation.
Musk operates xAI, a competitor to OpenAI. The public feud between the duo escalated when Musk questioned the funding for OpenAI's Stargate Project, prompting Altman to invite Musk to visit a facility under construction in Texas.