OpenAI CEO Declines Elon Musk's $97.4 Billion Acquisition Offer
Overview:
OpenAI CEO Sam Altman has rejected an unsolicited $97.4 billion offer from a group of investors led by Elon Musk to acquire the non-profit organization. The offer represents a significant discount to OpenAI's reported $260 billion valuation.
Altman's Response:
In a reported response to Musk's offer, Altman declined the proposal but offered to purchase Twitter, owned by Musk, for $9.74 billion. Musk subsequently referred to Altman as a "swindler."
History and Background:
OpenAI was co-founded by Musk and Altman in 2015 as a non-profit entity. However, Musk later distanced himself due to differences in strategic vision. OpenAI has since partnered with Microsoft, securing substantial investment and cloud computing support.
Current Status and Legal Battle:
Altman is currently attempting to transition OpenAI into a for-profit enterprise. Musk is suing to prevent this shift, claiming his initial $45 million donation was contingent on OpenAI remaining a non-profit organization.
Valuation Concerns:
Musk's offer, while potentially genuine, could indicate that at least one group values OpenAI's assets at $97.4 billion or more. However, legal experts highlight uncertainties regarding OpenAI's future growth, debt, and unusual corporate structure, which could significantly impact its valuation.
Musk's Rival Venture and Public Sparring:
Musk also operates xAI, a competitor to OpenAI. Previously, Musk had publicly questioned the financial capabilities of a data center project involving OpenAI, SoftBank, and Oracle. Altman disputed this claim.