Elon Musk's $97.4 Billion Bid to Transform OpenAI

Elon Musk's consortium has proposed a $97.4 billion offer to acquire OpenAI's controlling nonprofit, intensifying tensions with CEO Sam Altman. Musk opposes OpenAI's transition to a for-profit entity and aims to redirect its focus on open-source, safety-focused AI development for public benefit.

In a dramatic move, Elon Musk has made a staggering $97.4 billion bid to acquire the nonprofit administrating OpenAI, escalating his battle against the AI startup's shift to a for-profit model. The offer underscores longstanding friction with OpenAI CEO Sam Altman over the future direction of the ChatGPT developer.

Musk, who initially cofounded OpenAI with Altman as a nonprofit organization, has been vocal in his criticism of the company's recent for-profit aspirations, which it claims are essential for acquiring necessary capital to advance AI technology. His latest offer comes amid his ongoing legal struggle to thwart OpenAI's restructuring efforts.

OpenAI, valued at $157 billion during its last funding round, faces new pressures as Musk's proposal could significantly impact its current fundraising strategy and pending deals, including potential investment from SoftBank Group. As pressures mount, the nonprofit's board must evaluate the financial weight of Musk's bid against other offers on the table.

(With inputs from agencies.)