Sam Altman, CEO of OpenAI, has rejected a $97.4 billion takeover bid from a consortium led by Elon Musk. The bid was submitted by Musk’s attorney, Marc Toberoff, prompting Altman to suggest buying Twitter from Musk for $9.74 billion instead. OpenAI, co-founded by Musk and Altman, is currently structured as a nonprofit and for-profit partnership. Musk wants to return it to its nonprofit roots, while Altman aims to transform it into a fully for-profit company to raise more money for AI research.
The future of OpenAI remains uncertain, with Altman pushing for a for-profit model, while Musk owns a rival firm called xAI. Critics, including tech investor Christie Pitts, are skeptical of Musk’s motives, believing he may be trying to stifle competition. Altman, who sits on the board of the nonprofit, does not own stock in the organization. Talks over a potential sale of OpenAI may be influenced by the board, especially if the bid price increases.
In a separate development, Musk and other investors are teaming up with Oracle, a Japanese firm, and an Emirati sovereign wealth fund to build $500 billion in AI infrastructure in the US through a project called The Stargate Project. President Donald Trump hailed this as the largest AI infrastructure project in history. Musk, a top advisor to Trump, has raised doubts about the funding for the project. The future of OpenAI and the AI landscape as a whole continue to be shaped by these developments.
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