The $97B AI Power Play

TECH

By Aniket Chakraborty Feb 11, 2025 Arrow

OpenAI CEO Sam Altman swiftly rejects the offer with a witty counter: offering to buy Twitter for $9.74 billion.

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Musk's investment group includes xAI, Baron Capital Group, and Emanuel Capital, with plans to merge OpenAI into xAI.

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The bid comes after Musk filed two lawsuits against OpenAI in 2024, accusing them of prioritizing profits over humanity's benefit.

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OpenAI's current valuation stands at $157 billion, with potential to reach $300 billion through SoftBank's additional $40 billion investment.

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Legal experts suggest Musk's bid could complicate OpenAI's ongoing corporate restructuring efforts.

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The tension stems from OpenAI's shift from a nonprofit to a "capped-profit" model after Musk's departure in 2018.

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Musk and Altman's relationship has soured since co-founding OpenAI in 2015, leading to public disputes.

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xAI recently secured $6 billion in funding, reaching a $40 billion valuation.

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Altman has internally dismissed any interest in entertaining Musk's "supposed bid," according to The Information.

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