Elon Musk's Bid for OpenAI: Escalating Feud with CEO Sam Altman
Elon Musk's $97.4 billion bid for OpenAI, the nonprofit overseeing ChatGPT, has taken an intriguing turn. Musk's lawyers have indicated that he will withdraw the bid if OpenAI's board halts the transformation of the company into a for-profit enterprise.
Background: Musk and OpenAI's History
Musk and Sam Altman co-founded OpenAI in 2015 as a nonprofit. However, Musk later parted ways with the AI firm due to disagreements and started xAI, a competing company. Altman is now spearheading the transition of OpenAI into a for-profit business, which Musk strongly opposes.
The Lawsuit and Musk's Allegations
Musk's lawsuit claims that Altman breached his fiduciary duty by unilaterally rejecting the takeover bid without consulting the board. He alleges that Altman has "adverse domination" of OpenAI's board.
OpenAI's Response
OpenAI asserts that Musk's bid contradicts his lawsuit's claim that OpenAI's assets should not be used for profit. The company has not yet received a formal bid from Musk's investor group but has sent it to outside lawyers for review.
SoftBank's Investment
Japanese conglomerate SoftBank is planning a $40 billion investment in OpenAI, valuing the company between $260-$300 billion. This valuation significantly exceeds Musk's current offer.
Public Spat between Musk and Altman
The feud between Musk and Altman has become increasingly public. Musk has called Altman a "swindler," while Altman has accused Musk of trying to slow down OpenAI's progress.
Potential Timeline
A California federal judge has estimated that the courtroom battle between Musk and OpenAI could extend into 2027, likely leading to a jury trial.
Key Concerns over OpenAI's Transformation
Musk's main concern revolves around OpenAI's departure from its nonprofit status, which he believes jeopardizes its mission and potential impact.