Musk’s bid is likely to ratchet up longstanding tensions with OpenAI CEO Sam Altman over the future of the ChatGPT maker at the heart of a boom in generative AI technology. Altman on Monday promptly posted on X: “no thank you but we will buy twitter for $9.74 billion if you want.”
OpenAI is now trying to transition into a for-profit from a nonprofit entity, which it says is required to secure the capital needed for developing the best AI models.
Musk's lawsuit against OpenAI and Altman says the founders originally approached him to fund a nonprofit focused on developing AI to benefit humanity, but that it was now focused on making money.
Musk and OpenAI backer Microsoft did not immediately respond to requests for comment.
“This bid sets a marker for the valuation of the nonprofit’s economic interests,“ she said. “If OpenAI values the nonprofit’s interests at less than what Musk is offering, then they would have to show why.”
XAI could merge with OpenAI following a deal, according to the Wall Street Journal which first reported Musk's offer earlier on Monday. XAI recently raised $6 billion from investors at a valuation of $40 billion, sources have told Reuters.
“This (bid) is definitely throwing a wrench in things,“ said Jonathan Macey, a Yale Law School professor specializing in corporate governance.
Aside from any antitrust implications, a deal this size would need Musk and his consortium to raise enormous funds.
To finance such a bid, Musk could sell part of his stake in Tesla or take a loan against his stake, or use his stake in rocket company SpaceX that is worth tens of billions of dollars as collateral, according to an uninvolved investment banker, who requested anonymity.
“The offer seems to be backed by more credible investors ... OpenAI may not be able to ignore it. It will be the fiduciary responsibility of OpenAI’s board to decide whether this is a better offer, which could call into question the offer from SoftBank.”
Read More Details
Finally We wish PressBee provided you with enough information of ( Musk-led group makes $97.4 billion bid for control of OpenAI )
Also on site :