Altman Turns Down Massive Acquisition Offer
Sam Altman, the CEO of OpenAI, has declined a $97.4 billion takeover bid from a consortium of investors led by a high-profile billionaire entrepreneur. The bid, confirmed by attorney Marc Toberoff, was submitted to OpenAI’s board on Monday, seeking to acquire all assets of the company.
The rejection was made public when Altman posted a dismissive response on social media, stating: “No thank you, but we will buy Twitter for $9.74 billion if you want.” Despite his refusal, the proposed acquisition remains open for further consideration by OpenAI’s board, which could entertain a sale if the offer is revised upward. Questions persist regarding the bidder’s true intentions, given the ongoing legal disputes and personal rifts between the two business magnates.
Tensions Over OpenAI’s Mission and Structure
The billionaire entrepreneur and Altman co-founded OpenAI in 2015 as a non-profit entity. However, their relationship has deteriorated since the former left the company in 2018. One of the key points of contention is OpenAI’s transition to a for-profit model, a shift that the departing co-founder argues undermines the company’s original mission to develop artificial intelligence for the benefit of humanity.
In contrast, OpenAI maintains that the transition is essential to secure the funding needed to advance its AI models. Some industry experts remain skeptical about the takeover bid, questioning whether it is a genuine acquisition attempt or part of broader strategic maneuvering. Christie Pitts, a venture investor, expressed doubts about the bidder’s intentions, highlighting potential conflicts of interest given his ownership of a competing AI firm.
Strategic AI Investments and New Partnerships
The bid amount of $97.4 billion is notably lower than OpenAI’s $157 billion valuation during its last funding round in October 2024. Recent discussions suggest the company’s value may now approach $300 billion, raising speculation about whether the consortium would consider raising its offer. Toberoff stated that the investor group is prepared to match or exceed any higher bids that may emerge.
Meanwhile, OpenAI is advancing its strategic partnerships. The company has joined forces with a major U.S. tech firm, a Japanese investment group, and an Emirati sovereign wealth fund to develop $500 billion worth of AI infrastructure. The initiative, called The Stargate Project, was announced at the White House, where it was described as the most significant AI infrastructure endeavor to date.
Despite being a key advisor to the current U.S. administration, the billionaire entrepreneur leading the takeover bid has cast doubts on the project’s financial viability, suggesting that the consortium behind it may not have the necessary funds. However, he has not provided specific evidence to support this claim. The unfolding situation leaves OpenAI at the center of a high-stakes battle, with its leadership, valuation, and mission under intense scrutiny.
