OpenAI CEO Rejects Elon Musk's $97.4 Billion Acquisition Offer, Offers to Buy Twitter for $9.74 Billion
OpenAI CEO Sam Altman declined an unsolicited $97.4 billion offer from a group of investors led by Elon Musk to acquire the non-profit organization on Monday. The offer, reported by The Wall Street Journal, would significantly reduce OpenAI's valuation.
According to CNBC, SoftBank plans to invest $40 billion in OpenAI at a $260 billion valuation. In response, Altman wrote on social media platform X: "no thank you, but we will buy Twitter for $9.74 billion if you want." Musk subsequently labeled Altman a "swindler."
Musk and Altman co-founded OpenAI in 2015 as a non-profit entity, but Musk later distanced himself due to disagreements about its direction. OpenAI has since partnered with Microsoft, which invested billions and gained access to its AI models while serving as its cloud provider.
Altman aims to transform OpenAI into a for-profit enterprise, which Musk is contesting through a lawsuit. Musk donated $45 million to fund OpenAI's startup, alleging it was contingent on maintaining its non-profit status. Legal experts suggest OpenAI is legally obligated to receive fair market value for its assets.
Musk's $97.4 billion offer, if genuine, implies that at least some investors value OpenAI's assets at that level. However, legal uncertainties, debt, an unconventional business structure, and pending litigation could impact its valuation.
Musk also operates xAI, a rival to OpenAI. Previously, Musk claimed that OpenAI, SoftBank, and Oracle's Stargate Project lacked the $500 billion funding they claimed. Altman countered these claims and invited Musk to visit a Texas facility under construction.