Key Takeaways
- Musk, along with a group of investors, offered $94.7 billion for OpenAI in order to return it to a model based on open-source. Sam Altman, OpenAI’s board and Musk’s X quickly rejected the bid. Instead, they offered $9.74B to buy Musk’s X.
- Musk was a co-founder of OpenAI, but left the company in 2018. Altman has since shifted OpenAI to a for-profit business model, arguing that it is necessary for AI development. Musk has opposed it. OpenAI believes that Musk’s bid would have eliminated competition by giving him a significant amount of control over generative AI.
Another day, another Sam Altman and Elon Musk feud.
In today’s episode, the OpenAI CEO reportedly declared that the Musk-led group’s surprise bid to buy OpenAI would be rejected. He instead offered to buy X, owned by Musk.
The consortium of investors, along with Elon, launched to buy the artificial intelligence leader for $94.7 billionthe bid was submitted by a lawyer for Tesla and Elon Musk.
It’s time for OpenAI to return to the open-source, safety-focused force for good it once was, We will make sure that happens. – Elon Musk
According to the Information, Mr. Altman sent a memo to staff on Monday stating the board of directors have no interest in the bid presented and quickly turned down the offer, and offered a bid price of $9.74 billion to buy Musk’s X (formerly known as Twitter).
Sam didn’t sound very pleased with the offer when he offered his remarks to Axios on the topic and made it very clear that neither OpenAI nor its mission is up for sale.
He also added that the bid looked like an attempt to clear competition since Musk’s xAI hasn’t been able to beat OpenAI in the market.
Musk and Altman’s Long-Running Feud (20199013) Elon Musk helped fund OpenAI in 2015.He was one of the founding members. He resigned in 2018, but they have been arguing over who should be the leader and decide the AI giant’s future. OpenAI, originally founded as a non profit company in order to create AI tools for humanitywas restructured into a commercial entity
after a few years. Altman began to commercialize the platform, and in 2019 created a subsidiary that would allow the AI giants to attract outside investment without having the non-profit board.
According to certain reports, Altman is restructuring the company, steering it to become a completely for-profit entity . OpenAI argues that this step is essential to draw in the much-required funds for the development of the best AI models.
Several executives, including CTO, Mira Murti left the company soon after this. Co-founder Ilya Sutskever also quit to start a new safer and sustainable AI venture.
Musk filed a case against OpenAI last year, alleging that it had betrayed its principles and violated the terms of Musk’s original donations to the non-profit. Since then, the feud has continued, with occasional X controversies and press comments made on their opinions about AI’s direction.
Had OpenAI accepted this bid, it would’ve meant an almost autonomous control of Elon Musk over generative AI, giving him the power to pivot its growthin whatever direction he wished. According to Musk’s lawyer, the sole intention behind the bid was to restore ChatGPT to its original form.
When asked whether Mr. Musk’s intervention could complicate the for-profit arm of OpenAI’s takeover, Mr. Altman responded, “The board will decide what to do there”
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Alpa is a tech writer and editor with a wealth of experience in alternative finance, fintech, cryptocurrency, app security software, and the medical industry. She’s passionate about breaking down complex topics and sharing informative content that provides value.
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