Musk's $97.4 Billion Bid: The Unresolved Offer to Acquire OpenAI

In a twist to the unfolding saga of high-stakes corporate maneuvering, there remains a notable disconnect between Elon Musk's offer and OpenAI's board of directors' awareness. Details regarding the proposed acquisition continue to circulate as both parties appear to be frantically clarifying the process.

The Offer and Its Communication

Musk's legal team, headed by attorney Marc Toberoff, insists that a comprehensive offer was sent via email to OpenAI's outside counsel at Wachtell, Lipton, Rosen & Katz. According to Toberoff, the proposal took the form of a detailed, four-page Letter of Intent, endorsed by Musk and a group of investors, outlining an ambitious $97.4 billion purchase of OpenAI's assets.

Despite these claims, sources familiar with the matter have confirmed that the board has yet to receive this formal bid. This discrepancy is stirring confusion regarding the exact sequence of events and whether internal miscommunication has further complicated the matter.

OpenAI’s Stance and Background

OpenAI, controlled by a non-profit whose mission is to advance AI technologies for public benefit, has firmly stated that it is not for sale. OpenAI CEO Sam Altman was unambiguous during a recent public engagement in Paris, dismissing the offer as “ridiculous” and labeling it as one of Musk’s tactics to create disruption.

Internally, Altman communicated to employees that the board is leaning toward rejecting the bid, emphasizing that the integrity of OpenAI's mission takes precedence over any unsolicited takeover attempts. This decision comes amid the broader context of OpenAI’s ongoing transformation, as the organization prepares to transition from a non-profit to a for-profit model to attract the necessary $40 billion in capital for advancing its AI capabilities.

Broader Implications and Regulatory Oversight

Musk, who cofounded OpenAI before parting ways due to strategic differences, now leads a separate AI venture, xAI, and his recent move appears to be a strategic play in the larger tech landscape. Legal experts note that this bid, if it were to proceed, could influence the valuation of OpenAI’s charitable assets, raising significant concerns about fair market value during such high-profile transactions.

Delaware Attorney General Kathy Jennings has taken a close look at OpenAI's proposed organizational changes to ensure that any transition reflects the public-benefit focus rather than favoring private interests. This regulatory oversight is expected to play a crucial role in determining the outcome of any potential asset sale.

Key Points

• Elon Musk's $97.4 billion bid to acquire OpenAI's assets was allegedly sent via email to the firm's legal counsels.
• OpenAI's board has yet to officially receive the formal proposal, leading to ongoing disputes about the communication process.
• CEO Sam Altman dismisses the bid as a diversion tactic by Musk, emphasizing the non-profit’s commitment to its foundational mission.
• Amid plans to raise $40 billion and transition to a for-profit entity, OpenAI faces regulatory scrutiny over the valuation and sale of its charitable assets.
• This episode further complicates the already dynamic narrative of AI development and corporate strategy in the tech industry.