A group of investors led by Elon Musk has submitted a USD 97.4 billion bid to acquire OpenAI's assets, The New York Times reported. The consortium includes Musk’s artificial intelligence company xAI, investment firm Vy Capital, and Hollywood agent Ari Emanuel, among others. The offer comes as OpenAI is in the process of finalizing a USD 40 billion funding round led by Japan’s SoftBank, which could value the company at USD 300 billion, The Wall Street Journal reported.

Responding to Musk’s bid, OpenAI CEO Sam Altman dismissed the offer with a post on X, formerly Twitter, saying, "No thank you but we will buy Twitter for $9.74 billion if you want." His remark referenced the amount Musk is offering for OpenAI, turning it into a sarcastic counterproposal. Sources familiar with OpenAI’s response stated that the company has not yet reviewed the offer, which remains unsolicited.

Musk and Altman have a history of disputes. Musk co-founded OpenAI in 2015 alongside Altman but later left before the organization expanded. He has since launched a competing AI company, xAI, in 2023. In August last year, Musk sued OpenAI, accusing the company of prioritizing profits over its original mission of developing AI for the benefit of humanity. Recently, a U.S. federal judge ruled that parts of Musk’s lawsuit challenging OpenAI’s shift to a for-profit model might proceed to trial, requiring him to testify, Al Jazeera reported.

Tensions between the two intensified following former U.S. President Donald Trump's announcement of "Stargate," a USD 500 billion AI infrastructure initiative involving OpenAI, Oracle, and SoftBank. Musk criticized the project, arguing, "They don’t actually have the money." Altman countered by saying Musk was "wrong" and invited him to visit an AI development site in Texas. Altman also called the initiative "great for the country" and suggested that Musk should prioritize national interests in his "new role," adding an American flag emoji to his post.

Sources:

• The New York Times
• The Wall Street Journal
• Al Jazeera