Elon Musk’s $97.4 Billion Bid for OpenAI Sparks Controversy in the U.S

News Desk

San Francisco: In a bold move, a consortium led by Elon Musk has proposed a $97.4 billion acquisition of the nonprofit organization that oversees OpenAI, the creator of ChatGPT.

Despite claims from Musk’s attorney, Marc Toberoff, that the offer was sent to OpenAI’s external counsel at Wachtell, Lipton, Rosen & Katz, OpenAI’s board asserts they have not received any formal proposal.

OpenAI CEO Sam Altman has dismissed the unsolicited bid, emphasizing that the organization is not for sale. He described Musk’s offer as a tactic to disrupt OpenAI’s operations.

This development intensifies the ongoing dispute between Musk and OpenAI. Musk, who co-founded OpenAI in 2015 but departed due to strategic disagreements, filed a lawsuit in August 2024 to prevent the organization’s transition to a for-profit model. OpenAI contends that Musk’s acquisition attempt contradicts his legal actions and aims to undermine a competitor.

The bid has raised concerns among Tesla investors about Musk’s attention being diverted from the electric vehicle company. Analysts warn that this move could serve as a distraction from Tesla’s current challenges, including increased competition and declining revenues.

As the situation unfolds, the tech industry is closely monitoring the potential implications of Musk’s aggressive bid for control of OpenAI.