Paris: OpenAI CEO Sam Altman rejects Musk’s bid, dismissing a $97.4 billion takeover offer from Elon Musk and a group of investors, saying the company is “not for sale.” Speaking at the AI Action Summit in Paris, Altman emphasized OpenAI’s mission of developing artificial intelligence (AI) for the benefit of humanity.
Musk’s Takeover Attempt
Elon Musk, a co-founder of OpenAI, left the company years ago after a public fallout. His attorney, Marc Toberoff, confirmed that Musk had submitted an offer to acquire all of OpenAI’s assets. However, Altman quickly rejected the proposal and even made a sarcastic counteroffer on Musk’s social media platform, X, saying, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
What is OpenAI’s Structure?
Unlike other tech giants like Microsoft and Meta, OpenAI operates under a hybrid structure. It has both a non-profit arm and a for-profit subsidiary. This unique setup allows OpenAI to balance financial growth with its mission-driven goals.
Musk has repeatedly expressed concerns about OpenAI shifting away from its original mission of developing AI for the common good. He claims that returning it to a non-profit structure would align it with its founding principles. However, critics point out that Musk owns xAI, a direct competitor to OpenAI, raising questions about his true intentions.
Skepticism Over Musk’s Intentions
Tech investor Christie Pitts voiced doubts about Musk’s motives, stating, “He runs a for-profit AI company himself. So, there’s more than meets the eye here.” Altman echoed similar concerns, suggesting Musk is trying to buy OpenAI simply because xAI has been unable to compete.
Altman, who serves as both CEO and a board member of OpenAI’s non-profit arm, has advocated for the organization’s transformation into a fully for-profit entity. He argues this would help raise more funding for AI research. However, the board has the final say, and if Musk increases his offer, some members might reconsider a sale.
OpenAI’s Growing Value
Musk’s $97.4 billion offer significantly undervalues OpenAI. The company was last valued at $157 billion in October 2024, and recent reports suggest its valuation could now reach $300 billion in upcoming funding rounds. Musk’s consortium has hinted at the possibility of increasing its bid to match or exceed other potential offers.
The Stargate Project: OpenAI’s Next Big Move
Amid the takeover drama, OpenAI is moving forward with an ambitious plan called The Stargate Project. Partnering with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund, OpenAI aims to build $500 billion worth of AI infrastructure in the U.S.
The project was announced at the White House by President Donald Trump, who called it “the largest AI infrastructure project in history.” Trump emphasized that it would help keep the future of AI innovation in the U.S.
Musk, despite being a close advisor to Trump, has cast doubt on the project’s funding, claiming it lacks the financial backing it promises. However, he has provided no evidence to support this claim.
What’s Next for OpenAI?
With OpenAI’s value soaring and its expansion plans in full swing, it remains unlikely that Altman or the board will agree to Musk’s buyout. However, the situation is fluid, and further developments could reshape the AI industry’s future.
As the AI arms race intensifies, all eyes are on OpenAI and whether it will stay independent or face increasing pressure from big-money investors like Musk.
