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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

Elon Musk outlines plan for first Starship tower catch attempt

Musk confirmed that Starship V3 Ship 1 (SN1) is headed for ground tests and expressed strong confidence in the updated vehicle design.

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Credit: SpaceX/X

Elon Musk has clarified when SpaceX will first attempt to catch Starship’s upper stage with its launch tower. The CEO’s update provides the clearest teaser yet for the spacecraft’s recovery roadmap.

Musk shared the details in recent posts on X. In his initial post, Musk confirmed that Starship V3 Ship 1 (SN1) is headed for ground tests and expressed strong confidence in the updated vehicle design.

“Starship V3 SN1 headed for ground tests. I am highly confident that the V3 design will achieve full reusability,” Musk wrote.

In a follow-up post, Musk addressed when SpaceX would attempt to catch the upper stage using the launch tower’s robotic arms. 

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“Should note that SpaceX will only try to catch the ship with the tower after two perfect soft landings in the ocean. The risk of the ship breaking up over land needs to be very low,” Musk clarified. 

His remarks suggest that SpaceX is deliberately reducing risk before attempting a tower catch of Starship’s upper stage. Such a milestone would mark a major step towards the full reuse of the Starship system.

SpaceX is currently targeting the first Starship V3 flight of 2026 this coming March. The spacecraft’s V3 iteration is widely viewed as a key milestone in SpaceX’s long-term strategy to make Starship fully reusable. 

Starship V3 features a number of key upgrades over its previous iterations. The vehicle is equipped with SpaceX’s Raptor V3 engines, which are designed to deliver significantly higher thrust than earlier versions while reducing cost and weight. 

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The V3 design is also expected to be optimized for manufacturability, a critical step if SpaceX intends to scale the spacecraft’s production toward frequent launches for Starlink, lunar missions, and eventually Mars. 

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Elon Musk

Elon Musk estimates Tesla Semi could reach Europe next year

“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.

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Credit: Tesla

Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.

Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.

“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.

Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.

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Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.

Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.

The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets. 

Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.

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Tesla Cybercab coming next to Giga Berlin, Optimus possibly after

“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.

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Credit: Cybercab

Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk. 

During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.

“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.

Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.

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The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run. 

Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually. 

Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.

Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.

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