Elon Musk didn't have $43 billion to buy Twitter back in 2022, but he ended up sealing the deal—with some help from deep-pocketed friends and corporate allies. Now he wants to spend more than twice the initial amount to take over OpenAI, the artificial intelligence company he co-founded and later distanced himself from. A consortium of investors led by Musk has reportedly offered $97.4 billion to acquire the nonprofit entity controlling OpenAI, according to documents reviewed by The Wall Street Journal.
Musk’s attorney, Marc Toberoff, submitted the bid to OpenAI's board of directors on Monday. This move, whether strategic or simply bluster, seems to counter OpenAI CEO Sam Altman’s well-planned initiative to transition the company from nonprofit to for-profit status. OpenAI had previously committed to completing this transition by late 2026, part of a $6.6 billion funding round, which had valued it at $157 billion last October.
“It's time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated through his attorney to The Wall Street Journal. OpenAI did not respond immediately to requests for comment.
Following the report of Musk's bid, Sam Altman humorously declined the offer via Twitter: “No thank you, but we will purchase Twitter for $9.74 billion if you're interested.” This tweet reflects Altman’s confidence, perhaps bolstered by the backing of major technology investors. The consortium backing Musk reportedly includes investors like Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC, the latter led by Palantir co-founder Joe Lonsdale. Also included is Ari Emanuel, CEO of the entertainment conglomerate Endeavor, representing yet another powerful ally for Musk.
The roots of this bid can be traced back to Musk and Altman’s founding of OpenAI as a nonprofit organization back in 2015. After Musk's resignation from the company in 2019, Altman proceeded to establish for-profit branches to attract investment from corporate giants like Microsoft. This current effort aims to transform what has been developed under Altman’s tenure, potentially spinning out the nonprofit arm from traditional corporate operations. Should Musk's acquisition succeed, thoughts are brewing about merging xAI, Musk's own artificial intelligence venture, back with OpenAI.
OpenAI's pivot to for-profit has generated considerable backlash. Aside from Musk's lawsuit endeavors, notable adversaries include Meta, which opposes the shift, and Microsoft, which is embroiled in negotiations over its equity stake. Toberoff has indicated Musk’s group is prepared to match any higher bids for OpenAI. “If Sam Altman and the present OpenAI Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is...,” remarked Toberoff as he asserted the necessity of compensatory fairness for the charity's loss of control over this significant technological advancement.
While Musk's fervent offer shakes the AI establishment, simultaneously, OpenAI is progressing with external partnerships aiming to establish strong ties within media circles. Recently, Schibsted Media Group announced its new collaboration with OpenAI, to integrate content from its numerous published titles—such as national newspapers VG, Aftenposten, Aftonbladet, and Svenska Dagbladet—into OpenAI’s offerings including ChatGPT. This partnership will facilitate real-time news summaries, ensuring clear attributions back to Schibsted Media brands, thereby aiding users who seek verification.
Siv Juvik Tveitnes, CEO of Schibsted Media Group, explained, “This partnership is part of Schibsted Media’s broader efforts to integrate AI to support and strengthen journalism. By merging our editorial expertise with OpenAI’s technology and insight, we are adapting to progress alongside technological advancements.”
She continued by stating how the partnership places them at the forefront of commercial opportunities within the rapidly changing digital ecosystem. By acting early, they intend to shape how quality journalism is distributed, monetized, and sustained within AI-dominated landscapes.
Varun Shetty, Head of Media Partnerships at OpenAI, emphasized, “Our partnership with Schibsted Media furthers our goal of supporting quality journalism globally and enhancing the ChatGPT experience. By doing so, we provide timely news content, supporting media outlets and their audiences with advanced AI technology.”
At this pivotal moment, as Musk makes his bold offer, the broader ramifications on the AI sector and journalism alike are becoming apparent. Will Musk successfully reclaim control over the innovative domain of OpenAI, or will Altman’s established path for the organization dispel Musk’s ambitions?