OpenAI Declines Elon Musk's $97.4 Billion Acquisition Offer
OpenAI CEO Sam Altman has rejected an unsolicited bid from a group of investors led by Elon Musk to acquire the nonprofit at a valuation of $97.4 billion. The offer significantly undervalues OpenAI, which is reportedly seeking a $260 billion valuation in a potential investment from SoftBank.
Altman's response to Musk's offer, which was first reported by the Wall Street Journal, was poignant: "No thank you, but we will buy Twitter for $9.74 billion if you want." Musk promptly dubbed Altman a "swindler."
Musk and Altman co-founded OpenAI in 2015 but Musk later distanced himself due to disagreements about the company's direction. Altman has since forged a partnership with Microsoft, which has invested billions in OpenAI and gained access to its AI models.
Altman's ambition to commercialize OpenAI faces resistance from Musk, who is suing to prevent it. Musk claims his initial $45 million donation to OpenAI was contingent upon its non-profit status.
Legal experts emphasize OpenAI's obligation to maximize asset value. Musk's attempt to secure fair market value has garnered support from California's attorney general.
Musk's $97.4 billion offer, if genuine, establishes a lower bound for OpenAI's potential valuation. However, experts highlight the uncertainty surrounding OpenAI's growth, debt, structure, and pending litigation as factors that could influence its actual value.
Musk's rivalry with Altman predates this incident. He has previously questioned the financial viability of the Stargate Project, a joint venture involving OpenAI, SoftBank, and Oracle. Altman refuted these claims and extended an invitation to Musk to visit a facility under construction in Texas.