Elon Musk’s Offer to Take Control of OpenAI Faces Resistance
Elon Musk has announced that he will retract his $97.4 billion offer for OpenAI if its board halts the shift toward a for-profit structure. Musk’s legal team emphasized in a court filing that the offer is contingent upon OpenAI’s commitment to preserving its nonprofit mission.
Altman Rejects Musk’s Proposal
Sam Altman, OpenAI’s CEO, quickly rejected Musk’s proposal in a post on X (formerly Twitter). Altman humorously suggested, “No thank you, but we would consider purchasing Twitter for $9.74 billion if you’re interested.”
OpenAI’s Transformation Plans Under Threat
Musk’s offer arrives at a crucial time for OpenAI, transitioning to a for-profit organization. This shift is strategic. Musk aims to invest $500 billion in AI infrastructure, particularly through a venture called Stargate. Stargate will focus on advancing AI technologies. The investment is a key part of Musk’s broader vision for AI’s future.
Musk and Altman’s Legal Disputes Deepen
The rift between Musk and Altman, both co-founders of OpenAI, has grown over the years. Musk filed a lawsuit in February, accusing OpenAI of prioritizing profit over its original charitable mission. He further criticized OpenAI’s deepening ties with Microsoft.
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Musk’s Criticism of OpenAI and Microsoft Partnership
Musk escalated his legal battle with OpenAI, accusing the company of “self-dealing” and compromising AI safety. Moreover, Musk criticized the company’s focus on profits. Additionally, he targeted OpenAI’s collaboration with Microsoft, which invested $13 billion in 2023. As a result, Microsoft gained a nearly 49% stake in OpenAI’s for-profit operations. Consequently, Musk’s legal claims highlight growing concerns over OpenAI’s direction.
Musk’s Increasing Influence Under the Trump Administration
Musk’s actions regarding OpenAI align with his rising influence in the new Trump administration. As Tesla’s CEO, Musk now leads the Department of Government Efficiency. This department has focused on aggressive cost-cutting initiatives. Musk’s leadership highlights his growing political power and influence. His position in government amplifies his role in shaping future policies.
Ongoing Legal Battles and the Future of OpenAI
Musk’s push for control of OpenAI follows a series of legal actions against Altman and the company. After withdrawing a lawsuit in June, Musk revived it in August, claiming OpenAI misled him and breached their founding agreement. This lawsuit also alleges that Musk was defrauded of over $44 million in donations he made to OpenAI.
