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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 reiterates Tesla Optimus’ most sci-fi potential yet

Musk shared his comments in a series of posts on social media platform X.

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Credit: Tesla/YouTube

Elon Musk recently reiterated one of the most ambitious forecasts for Tesla’s humanoid robot, Optimus, stating it could become the first real-world example of a Von Neumann machine. He also noted once more that Optimus would be Tesla’s biggest product.

Musk shared his comments in a series of posts on social media platform X.

Optimus as a von Neumann machine

In response to a post on X that pondered on sci-fi timelines becoming real, Musk wrote that “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet.” In a separate post, Musk wrote that Optimus will be Tesla’s “biggest product ever,” a phrase he has used in the past to describe the humanoid robot’s importance to the electric vehicle maker.

A Von Neumann machine is a class of theoretical self-replicating systems originally proposed in the mid-20th century by the mathematician John von Neumann. In his concept, von Neumann described machines that could travel to other worlds, use local materials to create copies of themselves, and carry out large-scale tasks without outside intervention. 

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Elon Musk’s broader plans

Considering Musk’s comments, it appears that Optimus would eventually be capable of performing complex work autonomously in environments beyond Earth. If Optimus could achieve such a feat, it could very well unlock humanity’s capability to explore locations beyond Earth. The idea of space exploration becomes more than feasible.

Elon Musk has discussed space-based AI compute, large-scale robotic production, and the role of SpaceX’s Starship in transporting hardware and materials to other planets. While Musk did not detail how Optimus would fit with SpaceX’s exploration activities, his Von Neumann machine comments suggest he is looking at Tesla’s robotics as part of a potential interplanetary ecosystem. 

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Elon Musk

Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

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Credit: Tesla China

A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup. 

Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.

“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.

Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.

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In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.

Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.

While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.

SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility. 

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Elon Musk

Elon Musk and xAI donate generators to TN amid historic power outages

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

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Credit: Tesla

Elon Musk has donated hundreds of generators to Tennessee residents still without power following a historic winter storm, as per an update from Governor Bill Lee. 

The donation comes as thousands of households have gone days without electricity amid freezing temperatures.

Musk donates generators

As noted in a report from WSMV4, the historic storm that hit Tennessee resulted in hundreds of thousands of residents experiencing a power outage at the end of January. Thousands are still living without power or heat in freezing temperatures for up to nine days.

As per TN Gov. Bill Lee in a post on X, Elon Musk and xAI have donated hundreds of generators to assist residents in affected areas. “Tennesseans without power need immediate help. I’m deeply grateful to @elonmusk & @xAI for going above & beyond to support Tennesseans by donating hundreds of generators to fill the gap, & I value their continued partnership to solve problems & support communities across our state,” he wrote in his post. 

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Tennessee officials have stated that recovery efforts remain ongoing as crews work to restore power and address damage caused by the winter storm. The generators are expected to provide temporary relief for residents facing power outages during freezing conditions.

Tesla Powerwalls may follow

Musk publicly responded to the governor’s post while hinting that additional help may be on the way. This time, the additional support would be coming from Musk’s electric vehicle company, Tesla. 

“You’re most welcome. We’re working on providing Tesla Powerwalls too,” Musk wrote in his response to the official. 

Even before Elon Musk’s comment, Tesla had already extended help to affected customers in Mississippi and Tennessee. In a post on X, the official Tesla Charging account noted that all Superchargers in the two states are online, and free Supercharging has been enabled to help those in areas that are affected by persistent power outages. 

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These include Grenada, Tupelo, Corinth, Southhaven, and Horn Lake in Mississippi and several Supercharging sites in Memphis, Tennessee. 

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