Elon Musk Offers $97.4 Billion to Acquire OpenAI Amid Legal Battle
- Fahad Bin Khalid
- February 12, 2025
- 2:46 pm
- 176
- Business
Elon Musk has offered $97.4 billion to acquire OpenAI, the AI company he co-founded in 2015. This bid comes amid an ongoing legal battle between Musk and OpenAI over its shift to a for-profit model. His offer could further strain relations with OpenAI CEO Sam Altman as the company continues to expand its AI ambitions.
Musk’s Legal Battle with OpenAI
Musk sued OpenAI earlier this year, arguing that the company had moved away from its original nonprofit mission. He claims OpenAI was founded to develop AI for the benefit of humanity but has now prioritized profit-making. His lawsuit aims to prevent this shift and push OpenAI back toward open-source AI development.
The Stargate Project and Musk’s Concerns
OpenAI recently announced the $500 billion Stargate project, a major AI initiative. The project was revealed at the White House following Donald Trump’s return to office. Musk has questioned whether investors have enough funding to support this massive undertaking. His bid to take over OpenAI may be part of his effort to regain control over AI’s future.
Musk’s Statement and xAI’s Role
Musk’s attorney, Marc Toberoff, submitted the bid to OpenAI’s board on Monday. In a statement, Musk said, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.” He believes his leadership can restore OpenAI’s original mission.
Musk’s AI company, xAI, is backing the bid and could merge with OpenAI if the deal succeeds. xAI was founded in 2023 to compete in the AI industry, and Musk has positioned it as an alternative to OpenAI’s evolving business model.
The Future of OpenAI and AI Investment
OpenAI argues that it needs substantial funding to develop advanced AI systems. The company has defended its for-profit model, stating that it allows for more investment in AI research. However, Musk believes that monetizing AI could pose risks to public safety. His acquisition bid reflects his desire to steer AI development toward a more ethical and transparent path.
What Happens Next?
If Musk’s bid is accepted, OpenAI’s leadership and business strategy could change significantly. However, Sam Altman and OpenAI’s board may reject the offer, keeping the company’s current direction intact. This takeover attempt could lead to more legal battles and shape the future of AI technology.
The Elon Musk OpenAI bid has sparked debate over the balance between AI innovation and ethical responsibility. Whether Musk gains control or OpenAI continues on its current path, the AI industry is entering a new era of competition and regulation.
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