The board of directors of OpenAI has officially rejected Elon Musk’s nearly $100 billion offer for the company that produced ChatGPT, the most well-known artificial intelligence (AI) instrument in the world.
However, according to experts, Musk may not perceive the unsolicited proposal as a failure.
This is because the offer could still complicate CEO Sam Altman’s intentions to convert OpenAI from a non-profit controlled entity to a for-profit company.
Johnnie Penn, an associate teaching professor at the University of Cambridge, stated in an interview with the BBC that Musk is “essentially attempting to impede OpenAI’s growth trajectory.”
Musk and a consortium of investors, which included Hollywood superagent Ari Emanuel, submitted an offer of $97.4 billion (£78.4 billion) for all of OpenAI’s assets last week.
Sam Altman’s Plan to Transform OpenAI Into a For-Profit Company
Although it was a substantial quantity, it was significantly lower than the $157 billion the company was valued at in a funding round just four months ago and significantly lower than the $300 billion some believe it is currently worth.
The unusual structure of OpenAI, which consists of a partnership between for-profit and non-profit divisions, further complicates the situation.
It is believed that Mr. Altman intends to modify this by eliminating the non-profit board.
That entails expenses that Mr. Musk appears to be attempting to inflate.
“What Musk is trying to do here is raise the perceived value of the non-profit arm of OpenAI, so that OpenAI has to pay more to get out of the obligations it has to its own non-profit,” according to Penn.
It is unclear what its non-profit assets are worth. According to Lutz Finger, a senior lecturer at Cornell University and the founder and CEO of the AI startup R2Decide, Musk was proposing a price with his proposal.
“By Musk putting a price tag on the non-profit part, he makes the split way more expensive for Altman to do,” Mr Finger reported to the BBC. “It’s very simple.”
Mr Musk defended his actions by asserting that he aspires to restore OpenAI, which he co-founded, to its non-profit origins and original mission of developing AI for the benefit of humanity.
However, some argue that his motives are somewhat less noble and are associated with his own AI company, xAI, and chatbot, Grok, which have received a lacklustre response from the public.
“Musk has somewhat missed the AI train.” Mr. Finger stated, “He is lagging behind and has made numerous attempts to catch up.”
Mr. Finger asserts that Mr. Musk is endeavouring to incapacitate his most formidable competitor.
Mr Altman’s remark regarding Mr Musk’s offer on X and Mr Musk’s response to labelling his former partner a “swindler” appeared to exacerbate a strained relationship last week.
Mr Altman responded in an interview with Bloomberg by asserting that Mr Musk is not “a happy person” and that his decisions are made from a “position of insecurity.”
AI Industry Experts Weigh In on Musk’s $100bn OpenAI Offer.
The tit-for-tat is also being played out in court. US district judge Yvonne Gonzalez Rogers is evaluating Mr. Musk’s request for an injunction that would prevent OpenAI from executing its intended conversion.
He asserts that his condition will become irreparable without her intervention.
“It is conceivable that Mr. Musk’s assertions are accurate.” We will ascertain the answer. During a hearing in Musk v Altman earlier this month in Oakland, California, Gonzalez Rogers stated, “He will be called to the stand.”
According to OpenAI’s lawyers, Mr. Musk’s recent bid is in direct opposition to his previous assertions that OpenAI’s assets cannot be transferred for “private gain.”
“[O]ut of court, those constraints evidently do not apply, so long as Musk and his allies are the buyers,” according to their response brief.
According to certain observers, his objective was never to negotiate a transaction.
Karl Freund, Cambrian-AI’s founder and principal analyst, believes that the individual in question is merely attempting to generate commotion, news, and confusion.
However, that approach could also have an enduring impact on Mr Musk’s reputation and cause issues for his former rival.
“He is exceptionally gifted.” He established extraordinary organisations that are engaged in extraordinary endeavours. However, his agenda is prompting individuals to query his motivations,” Mr. Freund stated.
