Elon Musk's consortium bids $97.4 billion for OpenAI, potentially ending its nonprofit status. The move escalates tensions between Musk and OpenAI CEO Sam Altman, who are embroiled in a legal battle.
A consortium led by Elon Musk has offered $97.4 billion to acquire the nonprofit organization that governs OpenAI, according to a report from the Wall Street Journal on Monday. This development comes months after Musk initiated legal action against the artificial intelligence startup in an attempt to prevent its transition to a for-profit enterprise.
Musk's bid could exacerbate the long-standing tensions between him and OpenAI CEO Sam Altman regarding the future direction of the company, which has become a focal point in the burgeoning field of generative AI.The two are already engaged in an ongoing legal battle. Musk has publicly criticized OpenAI's ambitious, $500 billion project called Stargate, unveiled with significant fanfare at the White House shortly after President Donald Trump's return to office. Musk has suggested that the investors involved lack the financial resources to support such a massive undertaking. Musk's attorney, Marc Toberoff, stated that he submitted the bid to OpenAI's board on Monday, as reported by the WSJ. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk reportedly said in a statement provided by Toberoff. “We will make sure that happens.” OpenAI, Musk, Toberoff, and OpenAI backer Microsoft have not yet responded to Reuters' requests for comment. The bid is reportedly being supported by Musk's AI company, xAI, which could potentially merge with OpenAI following a successful acquisition. Musk co-founded OpenAI with Altman in 2015 but departed prior to the company's significant growth. He subsequently established the competing AI startup, xAI, in 2023. OpenAI is currently attempting to transition from a nonprofit to a for-profit entity, a move they argue is essential to secure the necessary capital for developing cutting-edge artificial intelligence models. Musk's lawsuit against OpenAI and Altman alleges that the founders initially intended to create a nonprofit dedicated to developing AI for the benefit of humanity, but that the organization has now shifted its focus towards profit generation
ELON MUSK OPENAI AI ACQUISITION FOR-PROFIT
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Musk Offers $97.4 Billion to Buy OpenAIElon Musk, through a consortium led by his AI company xAI, has offered $97.4 billion to acquire OpenAI, the non-profit organization behind the popular AI chatbot ChatGPT. This offer comes months after Musk sued OpenAI to prevent its transition to a for-profit entity, escalating tensions between him and OpenAI CEO Sam Altman. Musk claims OpenAI has strayed from its original mission of developing AI for the benefit of humanity and is now focused on profit.
Read more »
Musk Clashes With OpenAI CEO Sam Altman Over Trump-Supported Stargate AI Data Center ProjectIt's the latest in a feud between the two billionaires that started on OpenAI’s board and is now testing Musk’s influence with the new president.
Read more »
Elon Musk-led group makes $US97.4B bid for control of OpenAI, WSJ reportsElon Musk's investment group has made a $US97.4 billion bid to gain control of OpenAI, the leading artificial intelligence research company, according to a report by the Wall Street Journal.
Read more »
Microsoft, OpenAI Investigate Potential Data Theft by Chinese AI StartupMicrosoft and OpenAI are investigating potential unauthorized access to OpenAI's data by a group linked to Chinese AI startup DeepSeek. Microsoft security researchers observed individuals linked to DeepSeek exfiltrating data through OpenAI's API. This incident raises concerns about the potential misuse of OpenAI's technology and the competitive threat posed by DeepSeek's open-source AI model, R1.
Read more »
DOGE Prosecutor Offers Legal Support to Elon Musk Amidst USAID ControversyEd Martin, the interim U.S. attorney in Washington, D.C., pledged his support to Elon Musk and his Department of Government Efficiency (DOGE). Martin offered legal assistance to protect DOGE workers and operations, citing unspecified threats against them. This comes amid a clash between DOGE and USAID, with Musk aiming to shut down USAID despite its congressional authorization.
Read more »
Microsoft's OpenAI Relationship Shifts Amidst New AI ProjectMicrosoft's involvement in OpenAI's multibillion-dollar AI project, 'Stargate,' has raised questions about the future of their partnership. Although Microsoft remains a major investor and technology partner, the project's structure and OpenAI's access to rival cloud services suggest a less exclusive relationship. This shift comes after Microsoft pulled back from a potential larger investment due to concerns about OpenAI's stability and its CEO Sam Altman's fluctuating infrastructure plans.
Read more »