Sam Altman rejects Elon Musk's $97B takeover bid for OpenAI
What's the story
OpenAI CEO Sam Altman has publicly rejected a $97.4 billion unsolicited takeover bid from Tesla boss Elon Musk and a group of investors.
The offer was intended to acquire the non-profit overseeing ChatGPT, an AI company.
In an unexpected twist, Altman countered by offering to buy Musk's social media platform X.
In a post on X, Altman said, "No thank you but we will buy Twitter [now X] for $9.74 billion if you want."
Escalating feud
Musk's bid intensifies ongoing dispute with Altman
Musk's bid has further fueled his long-standing feud with Altman over OpenAI's future, the company they co-founded in 2015.
After Musk left the board in 2018, Altman took the reins and created a for-profit subsidiary to bring in investment from Microsoft and others.
He is now transitioning it into a traditional for-profit and separating it from the non-profit.
Legal battles
Musk's intentions and legal actions against OpenAI
Musk, via his attorney Marc Toberoff, said his bid was to return OpenAI to its original mission as an "open-source, safety-focused force for good." He promised, "We will make sure that happens."
Last year, Musk had sued OpenAI in California state court and federal court. He alleged the company strayed from its founding principles as a non-profit research lab committed to public welfare.
Dispute continues
OpenAI dismisses Musk's allegations as unfounded
OpenAI has dismissed Musk's accusations as unfounded.
Last week, Musk and OpenAI's legal representatives appeared in a California federal court where a judge considered Musk's request for an injunction to prevent the company from becoming a for-profit entity.
US District Judge Yvonne Gonzalez Rogers described it as a "stretch" for Musk to assert that he would suffer irreparable damage if she did not intervene to halt OpenAI's planned transition.
Challenges ahead
Altman's plan to separate nonprofit faces hurdles
However, Altman's plan to split the non-profit by 2026 has already hit roadblocks, including legal troubles with Microsoft and the ongoing discussion on how OpenAI's non-profit arm should be valued.
The news comes after Altman and other business leaders joined President Donald Trump last month to unveil a plan dubbed Stargate, which sought to invest up to $500 billion in US data centers over the next four years.