Elon Musk's $97.4B Offer for Non-Profit OpenAI Rejected
OpenAI CEO Sam Altman has declined an unsolicited $97.4 billion acquisition offer from investors led by Elon Musk. This offer represents a significant markdown from OpenAI's recently proposed $260 billion valuation by SoftBank.
Altman's rejection was made public in a response to Musk on X, where he jokingly offered to purchase Twitter for $9.74 billion. Musk subsequently labeled Altman a "swindler."
Musk and Altman co-founded OpenAI in 2015, but Musk later distanced himself due to strategic disagreements. OpenAI has since partnered with Microsoft, receiving significant investment and cloud computing services in exchange for access to its AI models.
Altman's goal of converting OpenAI into a for-profit entity is contested by Musk, who claims that his initial $45 million donation was based on the condition of OpenAI remaining non-profit. Legal experts emphasize the requirement for OpenAI to obtain fair market value for its assets.
Musk's offer, if genuine, suggests that at least one group of buyers values OpenAI at or above $97.4 billion. However, factors such as uncertain growth prospects, substantial debt, and pending litigation may impact its valuation.
Musk's investment in xAI, a competitor to OpenAI, further complicates the dynamic. The rivalry between the two entrepreneurs has extended to public spats, including Musk's claims that OpenAI and its partners lack the necessary funding for a data center project. Altman countered by inviting Musk to visit a construction site in Texas.