Elon Musk Moves to Acquire OpenAI for $97 Billion: Sam Altman Declines with Counterproposal to Buy X

Elon Musk, alongside several investors, has made a significant move to acquire OpenAI. They presented a $97 billion buyout proposal to Sam Altman, the CEO of OpenAI. However, Altman declined the offer with a simple "no thank you." This development follows Musk's previous legal actions against OpenAI.
Musk's interest in purchasing OpenAI comes after two lawsuits he filed against the company in 2024.

The first lawsuit, initiated in July 2024, accused OpenAI of deviating from its founding principles by adopting a more profit-oriented approach. Musk argued that this shift endangered the company's mission of benefiting humanity through AI.

OpenAI's Nonprofit Origins

The Wall Street Journal reported that Musk and his investment group proposed returning OpenAI to its nonprofit roots. Marc Toberoff, Musk's lawyer, stated, "If Sam Altman and the current board want OpenAI to become a fully for-profit company, it's important that the charity is fairly compensated for losing control of such groundbreaking technology."

In August 2024, Musk filed another lawsuit against OpenAI. This time, he accused the company of prioritizing profit maximization by developing advanced "artificial general intelligence" technology. He also alleged that OpenAI was involved in racketeering activities.

Sam Altman's Response

Altman responded to Musk's offer on X, formerly known as Twitter. He humorously suggested buying Twitter for $9.74 billion if Musk was interested. This comment referenced Musk's $44 billion acquisition of Twitter in 2022.

Musk's dissatisfaction with OpenAI stems from his role as one of its original supporters. Initially established as a nonprofit AI organization, OpenAI later transitioned to a "capped-profit" model. This change led to tensions between Elon Musk and the company's leadership over its direction and influence on AI technology.

The ongoing conflict between Elon Musk and OpenAI highlights differing visions for AI development. While Musk advocates for an open and nonprofit approach, OpenAI has pursued growth and profitability.

But despite his words, Musk's approach will likely change if he were to gain control of the platform. Musk has emerged as a controversial figure in the Trump administration, attempting to cut jobs and funding to key government agencies, with the aim to increase corporate power in the US.

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