The latest chapter in Silicon Valley's most dramatic tech rivalry unfolded this week as Elon Musk launched an audacious $97.4 billion bid for OpenAI's nonprofit arm, reigniting tensions with his former collaborator Sam Altman.
The bid, made through Musk's AI company xAI and other partners, looks less like a serious purchase attempt and more like a calculated move to throw a wrench in OpenAI's plans to become a fully for-profit company. At roughly one-third of OpenAI's estimated $300 billion value, the offer seems designed to stir up trouble.
There's more than money at stake here. Musk, who helped start OpenAI in 2015 before leaving in 2018, says he's fighting to protect the company's original mission. He wants AI “developed for the public good, not profit.” But things aren't that simple.
OpenAI's structure is unusual, it's split between a nonprofit that calls the shots and a for-profit arm that makes the money. This setup has become a headache as the company tries to raise the billions needed for AI research. Sam Altman, OpenAI's CEO, says they need to change this to move forward.
Musk picked his moment carefully. OpenAI is in talks with state regulators in California and Delaware about its plan to go fully for-profit. These regulators need to make sure the nonprofit gets a fair deal in the transition. Musk's low offer could force OpenAI to pay more to make this happen.
The bad blood between Musk and Altman adds spice to the story. They've traded barbs on social media, with Altman responding to Musk's bid by jokingly offering to buy Twitter for $9.74 billion, taking a clear shot at Musk's own controversial Twitter purchase.
Adding to the drama, OpenAI is part of a massive project called Stargate, backed by President Trump, that aims to boost America's AI capabilities. The project promises $500 billion in funding, though Musk claims that money isn't really there.
Tech investor Christie Pitts cuts to the chase: "I think it's fair to be pretty suspicious of this considering that he has a competitor himself... which is structured as a for-profit company." She's right - Musk's own AI company, xAI, could benefit if OpenAI stumbles.
While OpenAI works on securing new funding, including a possible $40 billion from SoftBank, people are asking tough questions about what the company should be. Is it a tech business looking to make money, or should it stick to its nonprofit roots?
This fight isn't just about who controls OpenAI - it's about the future of artificial intelligence itself. Should AI development focus on profits or public good? And who gets to make that call? As UCLA's Ellen P. Aprill puts it, Musk's bid throws "an enormous complication" into OpenAI's plans, and the effects could reshape the tech world for years to come.
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