OpenAI Takeover: Investors Backing Musk's $97 Billion Bid

Hostile Takeover Bid for OpenAI Launched by Investor Group

A group of investors, spearheaded by Elon Musk, has announced intentions to acquire OpenAI in what appears to be a hostile takeover attempt.

The consortium presented an offer of approximately $97.4 billion for all of OpenAI’s assets. They have also indicated a willingness to match or surpass any competing bids, as detailed in a press release to TechCrunch.

Sam Altman’s Response

OpenAI’s CEO, Sam Altman, swiftly responded to the offer via X (formerly Twitter). His reply was a firm rejection, coupled with a counter-proposal: “no thank you but we will buy twitter for $9.74 billion if you want.”

The Investor Consortium

The investor group comprises several firms, including:

• Baron Capital Group Inc.
• Valor Management LLC
• Atreides Management, LP
• Vy Fund III L.P.
• Emanuel Capital Management
• Eight Partners VC LLC

Several of these entities have established ties to Elon Musk.

Connections to Elon Musk

Baron Capital Group, founded by Ron Baron, holds significant investments in both Tesla and SpaceX through its Baron Partners Fund, managed by Ron and Michael Baron.

Atreides Management, led by Gavin Baker, previously invested in SpaceX during his 18-year tenure at Fidelity. Baker has publicly voiced support for Musk’s Tesla compensation package.

Valor Management was established by Antonio Gracias, an early investor in SpaceX and a former member of Tesla’s board of directors. He also invested in SolarCity prior to its acquisition by Tesla.

Vy Capital, founded by Alexander Tamas, maintains a stake in SpaceX and has also invested in other Musk-affiliated companies, such as The Boring Company and Neuralink.

Further Musk Affiliations

Eight Partners VC is publicly known as Joe Lonsdale’s firm, 8VC. Lonsdale is a known supporter of Musk and frequently interacts within similar professional networks.

He recently expressed his strong admiration for Musk’s DOGE on CNBC, an interview subsequently shared by Musk on X.

Seriousness of the Offer

The genuine intent behind this offer remains uncertain. Some speculate that it may be partially a form of provocation rather than a serious attempt at acquisition.

Another theory suggests that Musk is attempting to increase the cost Altman’s team would incur if they were to purchase OpenAI’s assets, as part of a restructuring from its nonprofit origins.

Musk’s Involvement with OpenAI

Elon Musk was initially involved in the founding of OpenAI as a nonprofit AI research organization. He has consistently voiced opposition to Altman’s plans to restructure the organization.