Elon Musk Launches $97.4 Billion Hostile Takeover Bid for OpenAI

The battle for AI’s future just took a dramatic turn. A consortium led by Elon Musk has launched a $97.4 billion hostile takeover bid for OpenAI.

The consortium includes Valor Equity Partners, Baron Capital, and Musk’s own xAI. This move directly challenges Sam Altman’s $500 billion “Stargate” project, which was announced at the White House last month.

The Offer

While OpenAI’s current valuation hovers around $300 billion, Elon is offering just $97.4 billion. This isn’t solely about money; it’s about control. Musk wants to steer OpenAI back to its original mission: open-source, safety-focused AI development. He co-founded OpenAI in 2015 as a nonprofit but left in 2019 when it shifted to a commercial model. Now, he’s back with a vengeance.

If successful, Musk plans to merge OpenAI with xAI, creating an AI powerhouse focused on transparency and safety.

Key Implications

Is this Twitter 2.0, or is it something much bigger? Controlling OpenAI means potentially controlling the future of information itself. What happens when the world’s richest man owns both a major social platform and the most advanced AI system?

The implications extend beyond tech:

• Could we see an “X Street Journal” powered by OpenAI?
• What happens when AI, media, and social control converge under one vision?

Some believe this strengthens American AI. Others see a power grab. The real question isn’t just about technology, but about power. Who gets to decide what AI does: the government, the people, or one man?

The implications are massive:

• Microsoft’s $10B+ investment in OpenAI is potentially in jeopardy.
• Altman’s Stargate project would be derailed.
• The future of AI development hangs in the balance.

This isn’t just another tech acquisition; it’s a philosophical battle over AI’s future: Altman’s vision of controlled, commercial AI versus Elon’s vision of open-source, democratized AI.

In response to the proposal, Altman shared a message on Musk’s platform, X, stating, “no thank you but we will buy Twitter for $9.74 billion if you want”.

Our Take

That $97.4 billion bid probably isn’t enough. Not even close. With OpenAI’s $300 billion valuation and Altman’s $500 billion Stargate vision, Musk might need to triple his offer.

This could trigger a bidding war. Microsoft won’t want to lose its $10 billion investment, and Google won’t want Musk controlling their biggest AI competitor. Who knows what other tech giants might jump in?

But maybe that’s exactly what he wants – to start the conversation, create chaos, and see what happens. Stay tuned. This story is just beginning.