Who Is Going to Own OpenAI? Musk’s Bid Puts It to the Test

Mike Isaac, Cade Metz and David Fahrenthold of The New York Times reported Monday evening that a group of investors led by Elon Musk has made a $97.4 billion bid to buy the assets of the nonprofit that controls OpenAI (and ChatGPT), escalating a yearslong, deeply personal tussle for the future of artificial intelligence between Musk and OpenAI’s chief executive, Sam Altman.

It’s one thing to control what we see and from whom we see it via algorithms on Twitter/X (which I use liberally), it seems a whole other thing to control the training data, retrieval methods, and response-generation techniques of an LLM like ChatGPT.

As of December 2024, ChatGPT has surpassed 300 million weekly active users, with users sending over 1 billion messages daily. This growth reflects not only ChatGPT’s widespread adoption but also its significant impact on various sectors, including education, business, and personal productivity.

OpenAI’s business structure is a complex one and Musk is one of the few people who understands it.

OpenAI was founded ten years ago by Altman, Musk, and others, with the goal of freely sharing AI technology. When Musk left in 2018 after a power struggle, Altman shifted OpenAI to a for-profit model to raise the massive funds needed for AI development. However, the nonprofit board retained control over the company.

In 2023, the board fired Altman, citing concerns about OpenAI’s mission. He was reinstated five days later and quickly moved to reduce the nonprofit’s influence, stacking the board with allies and seeking ways to sever its control.

Musk is now offering billions to acquire the nonprofit that still holds control over OpenAI. The nonprofit itself has minimal assets but holds immense power.

The OpenAI nonprofit board, explains the Times, must sell its assets at fair market value. Musk’s offer sets a high benchmark, and if the nonprofit accepts a lower bid from OpenAI’s for-profit arm, it may have to justify the decision to state regulators.

Added to the equation is Musk’s desire to play catch up on a myriad of AI players.