Elon Musk’s hostile 97.4 billion dollar bid for OpenAI ignites fiery feud with Sam Altman

World news: The ongoing feud between tech billionaires Elon Musk and Sam Altman has taken a new turn, with the CEO of OpenAI accusing Musk of insecurity as the SpaceX owner pushes for control over the AI tech giant. Musk's recent attempt to acquire OpenAI through a hostile $97.4 billion bid has ignited further conflict, with Altman making it clear that the company is "not for sale."

Altman accuses Musk of acting out of insecurity

In a scathing interview with Bloomberg, Altman shared his thoughts on Musk's actions. "Probably, his whole life is from a position of insecurity, I feel for the guy," Altman stated, adding that he doesn't believe Musk is a "happy person." The OpenAI CEO’s comments come as Musk continues to challenge the company’s shift from a non-profit to a for-profit entity, an issue that has sparked federal lawsuits involving OpenAI, Microsoft, and Musk himself.

Musk’s $97.4 Billion offer

Musk’s $97.4 billion bid to acquire OpenAI has raised eyebrows, further deepening the rift between the two tech moguls. Altman, who co-founded OpenAI with Musk in 2015, quickly responded with a post on X, mocking the offer. "No thank you but we will buy Twitter for $9.74 billion if you want," he wrote. The OpenAI CEO suggested that Musk’s offer was part of a broader strategy to slow down the company, stating, "I think he is probably just trying to slow us down. He obviously is a competitor."

Altman also expressed his frustration with Musk's tactics, wishing Musk would compete by building a better product instead of resorting to lawsuits and other disruptive measures. “There have been a lot of tactics, many, many lawsuits, all sorts of other crazy stuff,” Altman added.

OpenAI’s future and Musk’s influence on the board

Despite Altman’s dismissal of Musk’s offer, the OpenAI board will still have a significant say in whether the bid should be taken seriously. Larry Summers, a director on the OpenAI board, revealed that he had not received any formal communication from Musk regarding the offer. Meanwhile, Musk’s attorney confirmed that his bid is backed by his company xAI and supported by a range of investors, including Valor Equity Partners and 8VC.

In the midst of the ongoing drama, OpenAI is working on a major fundraising event that could push the company’s valuation to $300 billion, a massive leap from its October 2023 valuation of $157 billion. Following Altman’s fallout with the OpenAI board, the company underwent a major board overhaul, welcoming figures like former Treasury Secretary Larry Summers and investment banker Adebayo Ogunlesi.