How Elon Musk plans to sabotage OpenAI's transformation into a for-profit company
Key Points
- Elon Musk is leading a consortium of investors offering $97.4 billion to take control of the non-profit organization behind OpenAI. The unsolicited bid could thwart the plans of OpenAI CEO Sam Altman.
- Altman immediately rejected the offer, insisting that OpenAI's structure prevents individuals from taking control. Musk's high bid sets a clear benchmark for the non-profit organization's valuation.
- The offer comes as OpenAI is in talks for a new round of funding of up to $40 billion. With the investment and the planned transition to a for-profit company by the end of 2026, OpenAI would be valued at up to $300 billion.
A group of investors led by Elon Musk has launched an unexpected attempt to take over OpenAI's non-profit organization, potentially disrupting CEO Sam Altman's plans for the company's future.
The Wall Street Journal reports that Musk's consortium has offered $97.4 billion to acquire control of OpenAI's non-profit foundation. This move could interfere with Altman's vision to transform OpenAI into a for-profit entity and invest with the Stargate project and its partners up to $500 billion in AI infrastructure.
Musk says "it's time for OpenAI to return to the open-source, safety-focused force for good it once was." Altman quickly dismissed the offer, pointing out that OpenAI's structure prevents individual takeovers. In response, he playfully suggested buying Musk's X platform.
The high-value bid sets a benchmark for the non-profit's worth and could give its future leader significant influence over the new OpenAI company, according to the WSJ.
OpenAI plans to raise billions in funding
The timing is significant, as OpenAI is currently seeking up to $40 billion in new funding. The company's transition to a for-profit model by late 2026 and the new funding could push its valuation to $300 billion.
Musk, who has filed multiple lawsuits against OpenAI, claims Altman has abandoned the organization's original non-profit mission. He has also questioned the viability of the Stargate project's funding. Musk now runs xAI, which competes directly with OpenAI.
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