Elon Musk just rocked Silicon Valley with a jaw-dropping $100 billion hostile takeover bid for OpenAI. The Tesla and SpaceX billionaire, along with a powerful group of investors, made an unsolicited offer to buy out the artificial intelligence giant.
Legal drama intensifies as Musk strikes
Musk’s lawyer, Marc Toberoff, confirmed the audacious bid to the Wall Street Journal on Monday. The move escalates an already heated battle between Musk and OpenAI’s CEO, Sam Altman. The two former allies are now bitter rivals locked in lawsuits over the company’s direction.
OpenAI silent as tensions rise
So far, OpenAI has not publicly responded to Musk’s takeover attempt. The company, known for creating ChatGPT, remains tight-lipped. Insiders suggest the board is scrambling to come up with a strategy.
Altman, once Musk’s partner, has been pushing OpenAI toward a for-profit model. He’s secured massive funding from tech giants like Microsoft. But Musk’s sudden bid throws everything into chaos.
Musk vows to restore OpenAI’s mission
Musk insists OpenAI has lost its way. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” he told the Wall Street Journal. He promised to make it happen.
Musk and Altman co-founded OpenAI in 2015. But Musk walked away in 2019, frustrated with its direction. Altman then shifted gears, launching OpenAI’s for-profit division. Investors like Microsoft poured in billions.
Lawsuits fly as Musk fights back
Musk believes OpenAI betrayed its original nonprofit mission. He claims Altman is colluding with Microsoft to monopolize AI. He’s taken the fight to court, accusing OpenAI of selling out.
If Musk’s bid is accepted, it would shake up the AI industry. The Wall Street Journal reports he could gain a controlling stake in OpenAI. That would put him back in the driver’s seat of the company he helped create.
Musk’s secret weapon: xAI
Musk isn’t acting alone. His own AI startup, xAI, is backing the bid. A successful takeover could lead to a merger, combining xAI’s tech with OpenAI’s resources. Other investors include Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC, led by Palantir co-founder Joe Lonsdale.
Government watchdogs step in
Musk isn’t just battling OpenAI—he’s also taking on regulators. In January, he urged the attorneys general of California and Delaware to oversee an open bidding process. He argues that OpenAI’s nonprofit assets are being undervalued.
Meta joins the fight
Mark Zuckerberg’s Meta isn’t staying silent. The social media giant has officially opposed OpenAI’s for-profit plans. With so many tech titans involved, the battle for AI supremacy is reaching a boiling point.
Will Musk’s massive bid succeed? Will OpenAI’s board resist? The AI world is on edge as the power struggle unfolds.
