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Elon Musk-led investors offer $97.4 billion for nonprofit controlling OpenAI

MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

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A group of investors led by Elon Musk has offered $97.4 billion to acquire the nonprofit controlling OpenAI. 

The initial report about the Musk-led investors’ initiative was reported by The Wall Street Journal.

Key Details:

  • Musk attorney Marc Toberoff submitted the unsolicited offer for all of the nonprofit’s assets to OpenAI’s board on Monday.
  • The bid is backed by Musk’s artificial intelligence company, xAI, as well as other investors such as Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC. Ari Emanuel of Endeavor is also backing the offer through an investment fund, the WSJ noted.
  • “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens,” Musk noted in a statement provided by Toberoff.
  • Toberoff also noted that Musk and his fellow investors are ready to match or exceed any bids that challenge their $97.4 billion offer.
  • “If Sam Altman and the present OpenAI Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time,” he noted.

OpenAI’s Response:

  • As per a report from The Information, OpenAI co-founder and CEO Sam Altman reportedly informed told OpenAI staff that the company’s board of directors is not interested in Musk’s bid.
  • In a post on X, Altman also responded to Musk and the other investors’ offer. “No thank you but we will buy twitter for $9.74 billion if you want,” Altman wrote in a post on X.
  • Altman’s post received a reply from Musk, who wrote “Swindler.”
  • Altman is steering OpenAI towards becoming a traditional company, a process that includes spinning out the company’s nonprofit. OpenAI’s nonprofit would own equity in the new for-profit.
  • As noted by WSJ, Musk and the other investors’ $97.4 billion could result in the nonprofit ending up with a large and possibly controlling stake in the for-profit OpenAI.

Background and Conflict:

  • OpenAI was founded by Musk, Altman, and several other notable AI players in 2015 as a nonprofit. Musk ultimately left in 2019.
  • Under Altman’s leadership, OpenAI has created a for-profit subsidiary, which received backing from companies like Microsoft.
  • Musk has filed lawsuits against OpenAI, alleging it abandoned its nonprofit mission. 
  • He has also urged California and Delaware authorities to ensure a fair valuation of OpenAI’s nonprofit’s assets.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Tesla to launch in India in July with vehicles already arriving: report

Tesla is finally making serious moves toward launching in India, with showrooms opening in July, a report claims.

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Credit: Tesla

Tesla is finally bringing its business to India, a new report indicates, as the company is already shipping vehicles from China to the market where it has attempted to launch business for several years.

We first heard of Tesla planning to launch in India about a decade ago when CEO Elon Musk and Indian Prime Minister Narendra Modi met in California at the Fremont Factory in 2015.

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Over the years, the two have hinted that the automaker would eventually land in India, but issues with import duties have delayed Tesla’s attempts.

Now, there seems to be some serious movement in Tesla’s plans, as it has reportedly shipped the first batch of vehicles from China to India, according to Bloomberg. The outlet says these are Model Y Rear-Wheel-Drive configurations.

Tesla is also planning for other parts of the launch, like preparing for Supercharging, aftermarket parts and merchandise purchasing for vehicle owners and fans, and spare parts from various regions, including the United States, China, and the Netherlands.

The company and the Indian government must have come to some sort of agreement that was catalyzed by Musk and Modi’s meeting in February in the U.S.

It is a long time coming, and it now gives Tesla access to an incredibly vast market in India, where a very small percentage of 2024’s total automotive sales were comprised of electric vehicles.

Another interesting tidbit about the launch is that the vehicles will be coming from Gigafactory Shanghai and not Gigafactory Berlin as previously thought. Reports from other publications, like Reuters, indicated the German production facility was building vehicles for India early last year.

India has a very strict policy that favors domestic manufacturing, which is why the import duties were so high for foreign automakers looking to bring their product into the market. These duties were reduced from 110 percent to just 15 percent, as long as companies aim to invest in India and meet certain investment and sales targets.

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xAI’s Grok 3 partners with Oracle Cloud for corporate AI innovation  

Elon Musk’s xAI partners with Oracle to deliver Grok 3 to enterprise users via OCI. The move boosts Grok’s reach.

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Credit: Elon Musk | X

xAI’s Grok 3 is partnering with Oracle Cloud to deliver its advanced AI model to corporate customers.

Oracle announced its collaboration with xAI earlier this week. The partnership leverages Oracle’s robust infrastructure to offer xAI’s Grok 3, positioning it as a transformative tool for business applications.

“Today, we announced xAI has selected Oracle to offer xAI’s Grok models via OCI Generative AI service for a wide range of use cases and will use OCI’s leading AI infrastructure to train and run inferencing for its next-generation Grok models,” said Clay Magouyrk, Executive Vice President at Oracle Cloud Infrastructure, via LinkedIn.

Oracle’s cost-effective AI capabilities will support xAI’s demanding workloads, enabling faster processing for enterprise users.

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Oracle’s Karan Batta told Reuters: “Our goal here is to make sure that we can provide a portfolio of models – we don’t have our own.” Oracle will host Grok 3 alongside models from Meta, Mistral, and Cohere, ensuring corporate data remains secure within existing Oracle protections.

Oracle’s strategy focuses on integrating popular AI models into corporate software, and xAI’s Grok 3 enhances this portfolio. The collaboration expands Grok’s reach to businesses seeking secure, high-performance AI solutions for diverse use cases.

Elon Musk’s xAI launched Grok 3 in February. It competes with models from DeepSeek and OpenAI. Grok 3 is free for all X users, but features are limited. X offers Premium and Premium+ subscribers access to Grok 3’s advanced capabilities like DeepResearch and Think modes. Users who are not paid subscribers have access to Grok 3’s basic features.

Elon Musk’s companies have a longstanding relationship with Oracle. In 2018, Tesla appointed Oracle founder Larry Ellison to its board, a move Wedbush analyst Daniel Ives called a “home run appointment.”

In 2023, Ellison–who is no longer on Tesla’s board but still close with Musk–revealed plans for a Tesla Cybertruck police car.

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“Our next-generation police car is coming out very soon,” Ellison said at the 2023 Oracle CloudWorld conference in Las Vegas. “It’s my favorite police car. It’s my favorite car, actually. It’s Elon’s favorite car.”

Grok 3’s integration into Oracle Cloud strengthens xAI’s position in the corporate artificial intelligence market. By combining Oracle’s infrastructure with Grok’s cutting-edge capabilities, this collaboration could redefine enterprise AI adoption, driving innovation across industries.

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Tesla Robotaxis are becoming a common sight on Austin’s public roads

Tesla Robotaxi sightings are becoming much more frequent ahead of its launch planned for this month.

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Credit: @Muzeishen | X

Tesla Robotaxis are becoming a common sight on the public roads of Austin, Texas, as yet another test mule has been spotted near the company’s target launch date.

Just over a week ago, the first public sighting of a driverless Tesla Robotaxi was reported. The vehicle was an updated version of the Tesla Model Y, which will be the initial model used in the public deployment of the Robotaxi platform.

Throughout the past week, sightings have been more common, as people in Austin have been looking for the unique decal Tesla is placing on car doors to recognize the driverless vehicles (After all, Robotaxis are not as easy to recognize as driverless vehicles without the LIDAR unit on the roof like Waymo).

Yet another sighting of a Robotaxi was shared on social media today, just two days before CEO Elon Musk’s proposed launch date of June 22:

It is easy to tell that there is nobody in the driver’s seat of this vehicle. Tesla is using its white interior on this particular mule, making it incredibly simple to recognize that no human is controlling the car.

Whether Tesla will still meet the June 22nd deadline remains to be seen, but it is no secret that the company is prioritizing safety ahead of offering public rides.

Tesla will initially roll out the Robotaxi platform in Austin, but it has already started the regulatory process in other areas, specifically California.

The National Highway Traffic Safety Administration (NHTSA) is also helping to streamline the process for companies developing driverless vehicles by giving exemptions to automakers. It will make things much more efficient, benefiting Tesla and other car companies that have similar plans.

Tesla Robotaxi just got a big benefit from the U.S. government

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