OpenAI Rejects Musk's $97.4 Billion Offer Amidst Valuation Dispute
OpenAI CEO Sam Altman has declined an unsolicited $97.4 billion offer from a group of investors led by Elon Musk to acquire the non-profit organization. The offer, reported by The Wall Street Journal, would significantly reduce OpenAI's valuation.
SoftBank plans to invest $40 billion in OpenAI at a valuation of $260 billion, according to CNBC. In response to Musk's offer, Altman tweeted, "No thank you, but we will buy Twitter for $9.74 billion if you want." Musk promptly labeled Altman a "swindler."
Musk and Altman co-founded OpenAI as a non-profit in 2015, but Musk later distanced himself due to strategic disagreements. OpenAI has since partnered with Microsoft, which has invested heavily in the company and provides cloud computing services.
Altman seeks to transform OpenAI into a for-profit entity, a move opposed by Musk in a lawsuit. Musk claims his initial $45 million donation was contingent on OpenAI's non-profit status. Legal experts assert OpenAI is obligated to receive fair market value for its assets.
Musk's offer, if genuine, could establish a lower bound for OpenAI's valuation. However, unpredictable growth prospects, substantial debt, and ongoing litigation could impact the company's valuation.
Musk, who operates OpenAI rival xAI, has previously criticized OpenAI's funding, claiming the Project Stargate consortium lacks the necessary capital. Altman dismissed Musk's claims and invited him to visit a project site in Texas.
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