Elon Musk is making headlines with a $97.4 billion bid, led by a group of investors, to acquire the nonprofit that controls OpenAI. This move escalates the tension between Musk and OpenAI CEO Sam Altman, with whom he co-founded the company in 2015. Altman responded to Musk’s offer on X with a joke about buying Twitter for $9.74 billion, to which Musk called Altman a “swindler”.
Musk’s bid aims to return OpenAI to its original mission as an open-source, safety-focused organization. His attorney, Marc Toberoff, stated that Musk is committed to reinstating OpenAI’s non-profit status. Musk has been critical of OpenAI’s shift towards a for-profit model, accusing the company and its partner, Microsoft, of prioritizing profits over benefiting humanity.
The offer comes amid Musk’s lawsuit against OpenAI, alleging breach of contract and a departure from its founding principles. He claims that OpenAI’s founders initially approached him to fund a non-profit focused on AI for the benefit of humanity but that the company is now focused on making money.
The consortium supporting Musk’s bid includes his AI venture, xAI, along with Vy Capital, Baron Capital Group, and Emanuel Capital. If the deal goes through, xAI could potentially merge with OpenAI. James Altucher has praised Elon Musk’s Project Colossus noting that it’s more than just an achievement in computing it’s a foundation for solving problems that impact everyday Americans.
OpenAI was recently valued at $157 billion.
Elon Musk’s lawsuit against OpenAI stems from several key disagreements and concerns:
Breach of Original Mission: Musk alleges that OpenAI, under the leadership of Sam Altman, has deviated from its original mission of developing AI for the benefit of humanit. He argues that the company was founded as a nonprofit dedicated to open-source AI development focused on safety.
For-Profit Transition: A central point of contention is OpenAI’s transition to a for-profit entity. Musk strongly opposed this move, believing it contradicts the initial commitment to prioritize the benefit of humanity over financial gain. He even sought to block this conversion through legal means.
Partnership with Microsoft: Musk criticizes OpenAI’s close partnership with Microsoft, arguing that it has effectively become a “closed-source de facto subsidiary” of the tech giant. He believes this relationship prioritizes maximizing profits for Microsoft rather than benefiting humanity. The lawsuit seeks to nullify OpenAI’s license to Microsoft to use its AI models
- Microsoft to use its AI models.
- Control Over AGI: Musk’s lawsuit seeks a judicial determination that GPT-4 constitutes Artificial General Intelligence (AGI) and is therefore outside the scope of OpenAI’s license to Microsoft. He also seeks a court order compelling OpenAI to release its technology to the public.
- Failed Merger and Leadership Dispute: Musk disagreed with Altman and Brockman’s plan to turn OpenAI from a non-profit to a for-profit company, and before stepping down, reportedly mounted an unsuccessful bid to install himself as CEO.
- Loss of Control and Influence: Musk left OpenAI in 2018, reportedly due to a power struggle. Since then, he has launched his own AI company, xAI, to compete with OpenAI. The lawsuit can be seen, in part, as an attempt to regain influence over the direction of AI development at OpenAI.
The outcome of this clash between Musk and Altman will have significant implications for the future of OpenAI and the broader AI landscape.
