Musk's $97.4 Billion Bid Challenges OpenAI's Nonprofit Conversion

Elon Musk's consortium has offered $97.4 billion to purchase the nonprofit controlling OpenAI, aiming to stop its transition to a for-profit firm. Tensions persist between Musk and OpenAI CEO Sam Altman regarding AI's future. Musk, with his firm xAI, challenges OpenAI's current fundraising and business direction.

Elon Musk has launched an audacious bid to acquire the nonprofit entity that manages OpenAI, offering a staggering $97.4 billion. This move is seen as an attempt to thwart OpenAI's progression from nonprofit to a for-profit organization.

This latest offer intensifies Musk's longstanding disagreement with OpenAI CEO Sam Altman over the future direction of the generative AI technology company. Musk and Altman co-founded OpenAI in 2015, intending it to be a nonprofit organization.

However, Musk exited the company and launched xAI. The conflict peaked when Musk sued Altman last year, arguing that OpenAI prioritized profit over its original mission of benefiting humanity. Musk's bid is backed by several financial institutions, including Baron Capital Group and Valor Management, suggesting a possible merger with xAI.

(With inputs from agencies.)