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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

Russia seeks collaboration with Elon Musk on Mars flights

Putin’s special envoy seeks collaboration with SpaceX to strengthen Roscosmos and explore Mars. Will Musk consider it?

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Vitalik Buterin on Elon Musk, Mars, & AI.
Photo Credit: Nasa

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Russia is seeking a collaboration with Elon Musk for its own Mars flights.

United States President Donald Trump is expected to speak with Russia’s President Vladimir Putin on Tuesday, March 18. President Trump will reportedly try to convince President Putin to accept a ceasefire between Russia and Ukraine and end the three-year war.

While Trump talks to the Russian President, Kirill Dmitriev aims to talk to Elon Musk. President Putin appointed Dmitriev as his special envoy on international economic and investment cooperation. The new envoy noted that his country’s enemies have been attempting to derail President Trump’s efforts to restore communication between the United States and Russia.

Dmitriev also commented that Russia wants to work with SpaceX CEO Elon Musk to strengthen and develop the country’s space agency Roscosmos and Rosatom–Moscow’s state nuclear corporation.

” I think that there will undoubtedly be a discussion with Musk (about Mars flights) in the near future,” Putin’s envoy states.

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A few years ago, the ESA (European Space Agency) and Roscosmos planned a joint project called the ExoMars 2022 mission. The joint project was supposed to launch in September 2022, but failed to push through after Russia invaded Ukraine. The project is scheduled to launch in 2028 without Russia. Roscosmos has planned a separate mission to Mars.

As of this writing, Elon Musk has not agreed to meet Dmitriev or discuss any developments for Roscosmos or Rosatom. The White House has not announced a formal meeting between Musk and Dmitriev either.

The main focus of President Trump and President Putin’s meeting will be toward a ceasefire between Russia and Ukraine. The two heads of state will discuss matters via a phone call.

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Elon Musk

Elon Musk roasts owners of this car brand after another Tesla vandalism incident

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Elon Musk roasted owners of one specific car brand after yet another incident of a Tesla being vandalized, this time in New York.

Tesla owners have had a bit of a target on their backs in recent months as Musk, CEO of the company, has joined forces with U.S. President Donald Trump in an effort to eliminate excessive and unneeded government spending in the new Department of Government Efficiency, or DOGE.

Due to Musk’s bold personality and unfiltered political beliefs, he has gained plenty of critics in the last few months. Tesla owners are being targeted as a result, seeing their vehicles be vandalized on nearly a daily basis.

Tesla-owned showrooms across the country have also been the target of some attacks, as one was even damaged in a series of shootings, another lit on fire by a Molotov cocktail.

Nevertheless, Musk has continued to stand firm on his beliefs, and Tesla drivers are getting fed up with the amount of damage being done to their cars. In this particular instance, someone drew a swastika on the side of a New York City Tesla Cybertruck owner. He was able to confront the person who drew the offensive logo, an exchange that was caught on camera:

The video was shared on X, which grabbed the attention of Musk, who was sure to criticize the make of the assailant’s vehicle: a Subaru.

Musk said:

“Crazy people. Naturally, he drives a Subaru …”

The playful jab at Subaru drivers likely comes from the stereotype that those vehicles are usually driven by people with intense political and social beliefs. Facetious posts on Reddit claim that Subarus won’t operate without at least ten bumper stickers on them. Subaru’s past marketing and advertising campaigns have attracted those who are “outdoorsy,” Google’s AI description of the drivers states.

Musk has never held back and never will. In an interview with MSNBC, he said he will speak his mind and if his companies lose money because of it, “so be it.” One thing is for sure, Musk is not going to shy away from speaking or posting how he pleases.

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Tesla says it will be a victim of Trump admin’s tariff strategy

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Credit: Tesla

Tesla said in a letter to U.S. trade representative Jamieson Greer that it would be a victim of the Trump administration’s tariff imposition strategy, stating it would not be immune to rising costs that could increase the price of its electric cars.

In a letter from Tesla to Greer that was seen by Financial Times, the EV maker said it would be “difficult or impossible” to source some parts of its cars domestically due to supply chain limitations. While it “supports” fair trade, it let the Trump White House know that it would also be exposed to some of the impacts that could be felt as a result of the tariffs:

“Nonetheless, even with aggressive localisation of the supply chain, certain parts and components are difficult or impossible to source within the US.”

It also urged Greer to:

“further evaluate domestic supply chain limitations to ensure that US manufacturers are not unduly burdened by trade actions that could result in the imposition of cost-prohibitive tariffs on necessary components.”

Tesla also sends vehicles to countries like Canada, which are subject to tariffs. The company said the actions by the U.S. “have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries.”

The letter, dated March 11, was written on the same day President Trump purchased a Deep Red Tesla Model S Plaid in an event in front of the White House featuring Musk alongside the President.

President Donald Trump buys a Tesla at the White House – Here’s which model he chose

Tesla’s a great company; they’re American cars, it’s American made. He employs thousands of people. He has the most modern plants in the world,” Trump said on Tuesday. “I know people that have these cars; It blows them away. They love them.”

The letter shows that, while Musk and Trump are currently working alongside one another to iron out government spending, a task the Tesla CEO took on willingly as he campaigned for the President last election season, one thing remains: business is business.

Tesla has pushed prices upward in Canada as a response to the tariffs. Other vehicles in the Tesla lineup, including the flagship Model X, have had their prices see minor increases as well, and this is for U.S. customers.

The Trump administration has played hardball with Canada with tariffs, only for our neighbors up north to impose countertariffs on electric supply to some of the states in the Northeast. It seems, at least early on in as Trump establishes a narrative in his White House of how the U.S. will be treated, there will be some effects that impact Musk’s companies as he works alongside the President.

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