Elon Musk Proposes $97 Billion Acquisition of OpenAI

The billionaire's offer comes amidst legal disputes and a push to redirect the company's mission back to its non-profit roots.

Elon Musk has made a bid of $97 billion (£78.3 billion) to acquire OpenAI, the organization known for developing the popular AI model ChatGPT.

This offer arrives just months after Musk initiated legal proceedings against the start-up he was involved in founding in 2015 alongside current CEO Sam Altman.

Musk's proposal, which includes backing from a consortium of investment firms and his own artificial intelligence start-up, xAI, aims to revert OpenAI to its original status as a non-profit research organization focused on open-source technology and safety.

Originally founded as a non-profit, OpenAI has transitioned into a for-profit model, a shift that has become controversial over time.

Musk expressed his intentions in a statement, saying, "It's time for OpenAI to return to the open-source, safety-focused force for good it once was.

We will make sure that happens."

Sam Altman, the chief executive of OpenAI, responded to Musk's offer through his social media platform X, rejecting the proposal with a light-hearted quip: "no thank you but we will buy Twitter for $9.74 billion if you want."

Musk previously invested approximately $45 million (£36 million) in OpenAI from its inception until his departure in 2018, following a period of increasing tension between him and the organization.

The ongoing legal dispute centers around Musk’s attempt to secure a court order to prevent OpenAI from fully transitioning to a for-profit entity.

These developments are taking place in a California federal court, where Musk and OpenAI lawyers are currently engaged in legal arguments.

OpenAI has been valued at around $157 billion in its latest funding round, presenting Musk with the challenge of significantly increasing his bid should he wish to pursue the acquisition further.