SALAR NEWS

Sam Altman rejects Musk’s $97B OpenAI bid

OpenAI has announced a major AI infrastructure initiative in partnership with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund.

Agencies

https://salarnews.in/public/uploads/images/newsimages/maannewsimage11022025_221546_altman-musk-2025-02-9d7ce6c75919cbe22ed81231d218b57b-16x9.jpg

Sam Altman and Elon Musk

California, 11 FEB

Sam Altman, CEO of OpenAI, has turned down a $97.4 billion (£78.4 billion) acquisition bid from a consortium led by Elon Musk. The proposal, submitted to OpenAI’s board on Monday by Musk’s attorney Marc Toberoff, sought to acquire all of the company’s assets.

The bid marks the latest chapter in an ongoing feud between Musk—Tesla and X owner and a close advisor to US President Donald Trump—and Altman over OpenAI’s direction. The two co-founded OpenAI in 2015 as a nonprofit, but their relationship has soured since Musk’s departure in 2018.

Responding to the takeover offer, Altman quipped on Musk’s social media platform X: “No thank you but we will buy Twitter for $9.74 billion if you want.” His outright rejection does not entirely rule out the deal, as OpenAI’s board still has a say and could consider the bid, particularly if a higher offer emerges.

However, questions remain about Musk’s intentions—whether he genuinely seeks control of OpenAI or if the bid is a strategic move in his ongoing legal dispute with the company. Critics also point out that OpenAI’s latest funding round valued it at $157 billion in October 2024, with reports suggesting ongoing talks could push its valuation to $300 billion—far above Musk’s offer.

Meanwhile, OpenAI has announced a major AI infrastructure initiative in partnership with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund. Dubbed ‘The Stargate Project,’ the $500 billion venture was unveiled at the White House by President Trump, who described it as “the largest AI infrastructure project in history.”