Elon Musk is spearheading a significant bid that has the potential to revolutionize the field of artificial intelligence. Leading a consortium of investors, Musk has put forth an offer of $97.4 billion to acquire OpenAI, the parent company of ChatGPT.
Musk has been embroiled in a longstanding feud with OpenAI’s CEO, Sam Altman, resulting in a series of legal disputes against the company and Altman. Musk alleges that OpenAI and its leadership have misrepresented the organization as a philanthropic entity, contending that they are now focused on generating profits with their AI technologies.
OpenAI operates as a non-profit overseeing a for-profit entity known as OpenAI LP, which has rapidly escalated in value from virtually nothing to approximately $100 billion under Altman’s direction. The substantial investment by Musk, as initially reported by the Wall Street Journal, could potentially grant him majority control over the company, rivaling his own X.AI artificial intelligence venture.
Marc Toberoff, an attorney representing the investors, emphasized the importance of fairly compensating the charity aspect of OpenAI, urging a return to the organization’s origins as an open-source, safety-oriented force for good.
In response to these developments, Altman expressed reluctance towards Musk’s offer, suggesting an alternative proposition to acquire Twitter for $9.74 billion.
Musk, a co-founder of OpenAI in 2015, departed due to disagreements surrounding the company’s shift towards for-profit activities. Founded on the premise of addressing the potential risks posed by artificial general intelligence (AGI), OpenAI initially prioritized transparency and public access to its products.
However, with substantial backing from companies like Microsoft and venture capital firm Thrive Capital, there arose a need for growth and profitability. This pressure likely prompted Altman to drive innovation and faster product launches, albeit with potential risks associated with the technology’s deceptive capabilities in replicating human speech and behavior.
A tumultuous corporate struggle unfolded in late 2023, resulting in Altman’s dismissal and subsequent reinstatement. The board underwent restructuring, with former directors expressing concerns over OpenAI’s rapid progression at the expense of safety considerations.
Musk’s legal actions against OpenAI commenced in June 2024, with an initial lawsuit later withdrawn following the publication of emails from OpenAI’s inception that contradicted Musk’s claims and highlighted the organization’s financial imperatives. Subsequently, a fresh lawsuit was initiated by Musk.
In August 2024, Elon Musk accused OpenAI of rushing to develop potent “artificial general intelligence” technology solely for profit maximization. In response, Musk alleged that the company was involved in racketeering practices. However, OpenAI countered by suggesting that Musk’s claims stemmed from jealousy over his departure from the startup in 2018. Musk had attempted unsuccessfully to persuade his co-founders to allow Tesla to acquire OpenAI before his exit. For more news and newsletters from CNN, be sure to sign up for an account on CNN.com.
