Billionaire Musk propositions a $97 billion deal for OpenAI, prompting Altman's sarcastic retort.
Ten years ago, Musk and Altman brought life to OpenAI, the global AI leader today. After some time, Musk departed to establish xAI, a rival AI company. Now, he's trying to rejoin forces with OpenAI, but his proposal falls flat.
In response to Musk's investment proposal worth $97.4 billion for OpenAI, CEO Sam Altman reportedly told his team, "Nah, but we'll snag Twitter for $9.74 billion if you're up for it." Altman's sarcastic tweet hinted at his lack of interest.
The consortium backing Musk's offer aims to return OpenAI to its original charter, focusing on open-source AI development and safety. Musk, an original OpenAI co-founder, claims this will happen under his leadership.
OpenAI's Soaring Valuation
OpenAI's value climbed to $157 billion in its latest funding round, inked in October 2022. The consortium, including Musk's xAI, may merge with OpenAI after the purchase.
Founded as a non-profit research organization in 2015, OpenAI added for-profit subsidiary OpenAI LP in 2019. Companies like Microsoft poured billions into this entity. OpenAI's ChatGPT, now a prominent AI model, debuted in late 2022 and sparked a global AI boom.
The unique ownership structure designed by OpenAI's founders to advance safe artificial general intelligence (AGI) or superintelligence is catching attention. Now, OpenAI seeks a shift to a profitable status to keep funding the best AI models.
[Enrichment Data Insight:] The tensions between Musk and Altman reflect growing competition and a strategic shift in the AI industry. Despite the rejective stance from OpenAI, Musk's plan reshaping the organization stirs intrigue. The ongoing restructuring, involving legal and strategic considerations, will impact the future of AI development. OpenAI's pursuit of profitability while maintaining its non-profit research roots proves a challenging undertaking.
OpenAI's current CEO and board, backed by a $40 billion SoftBank-led funding round, have their work cut out for them, balancing legal obligations and strategic goals in the face of Musk's offer.
Sam Altman, the current CEO of OpenAI, was reportedly unimpressed by Elon Musk's investment proposal worth $97.4 billion, jokingly suggesting instead to purchase Twitter for $9.74 billion.
As the value of OpenAI soared to $157 billion in its latest funding round, Sam Altman and the board are now faced with a challenging task of striking a balance between maintaining OpenAI's non-profit research roots and transitioning towards profitability, all while navigating the ongoing tensions with Musk and his plans for the organization.
