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OpenAI CEO Sam Altman rejected Elon Musk's unsolicited $97.4 billion acquisition offer for the artificial intelligence company at the Paris AI Summit. He dismissed Musk's attempt as another disruptive move to interfere with OpenAI's advancement. According to Altman, the organization would remain independent, "It’s another one of his tactics to try to mess with us," he said. This decision came during the ongoing competition between these two technology tycoons.
Several venture firms and investors supported Musk's reported acquisition proposal. Altman maintained his absolute support for OpenAI's independence and mission to advance AI technology. Musk's proposal sparked doubts about his true intentions, after which Altman described his actions as a sign of insecurity. In an interview with Bloomberg Television, Altman stated, "Probably his whole life is from a position of insecurity."
A legal statement from Musk’s team officially outlined the $97.4 billion proposal, which further worsened his dispute with Altman. Musk's legal advisor, Marc Toberoff, emailed the purchase bid to the external legal consultants representing OpenAI. Through the proposed offer, Musk and his group expressed their interest in buying OpenAI's assets and potentially integrating them into his AI venture xAI.
After publicly disclosing the acquisition proposal, Altman rejected the funding offer. The CEO declared that his company would avoid all acquisition offers, reaffirming OpenAI's commitment to advancing AI solutions that serve society. Musk, along with investors such as Joe Lonsdale’s 8VC, Valor Equity Partners, and Baron Capital, approached Altman with an investment proposal, yet he found their support unconvincing.
Through a humorous post on X (formerly Twitter) Altman suggested that OpenAI could acquire Musk's Twitter for $9.74 billion instead. Altman's sarcastic statement and doubting voice tone highlighted the intense clash between the two.
Musk's group initiated an unexpected offer to OpenAI just as the organization began negotiations for a large $40 billion funding round. The funding agreement organized by SoftBank is projected to increase OpenAI's market worth to approximately $300 billion. OpenAI stands to become one of the world's top private companies alongside ByteDance which owns TikTok and Elon Musk's successful SpaceX.
Musk's bid for OpenAI's ownership occurs at a sensitive moment since it threatens to interfere with the company's pursuit of $40 billion in funding. The funding discussions for the OpenAI deal with SoftBank will shape OpenAI's direction of change and determine its market value. The uncertain future does not deter OpenAI from maintaining its focus on developing safe cutting-edge AI technology according to Altman.
