Elon Musk (Wikipedia)
In a dramatic twist to an already fiery rivalry, an investor group led by Elon Musk has made an unsolicited $97.4 billion bid to seize control of the nonprofit behind OpenAI—escalating a long-simmering feud between Musk and the company’s CEO, Sam Altman.
This is while Elon Musk is suing the company, accusing OpenAI and tech titan Microsoft of orchestrating an illegal power grab to monopolize the artificial intelligence market.
At the heart of the clash is Altman’s push to restructure OpenAI into a for-profit entity, a move Musk has fiercely condemned. The two billionaires, who once stood side by side as co-founders of OpenAI in 2015, are now locked in a legal showdown over the future of the company. OpenAI argues that restructuring is key to building its most advanced AI models yet, while Musk remains adamant that the shift betrays the organization’s founding mission.
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“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Elon Musk said in a statement issued through his attorney, Marc Toberoff. “We will make sure that happens.”
OpenAI founder Sam Altman responded with a snarky comment made on Elon Musk owned Twitter saying, “no thank you but we will buy twitter for $9.74 billion if you want.”
The news comes just days after a federal judge ruled that Elon Musk’s lawsuit had enough merit to move forward, declining to dismiss the case.
Elon Musk is suing Sam Altman’s OPenAI for breach of contract charging that the company has failed to live up to its found principle of working, “for the benefit of humanity broadly.” Sam Altman is also named in the lawsuit that alleges he reneged on the original plan for OpenAI to be a non-profit, open-source mission.
The 35 page lawsuit was filed in Superior Court in San Francisco.
And OpenAI is moving forward with its plan to reduce reliance on Nvidia (NVDA.O) for chip supplies by developing its first-generation in-house AI silicon.
OpenAI is an artificial intelligence (AI) research and implementation organization based in the United States. It was founded in 2015 by Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman and several others. OpenAI’s mission is to ensure that artificial general intelligence (AGI) benefits all humanity.
Sources told Reuters that the ChatGPT maker is finalizing the design of its custom chip in the coming months and plans to send it for fabrication at Taiwan Semiconductor Manufacturing Co (2330.TW). The process of submitting an initial chip design for manufacturing is known as “taping out.”
