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Elon Musk says he’ll drop OpenAI bid if its board does this: report

Constellation Research founder Ray Wang explains how the fight between Elon Musk and OpenAI’s Sam Altman began on ‘Making Money.’

Elon Musk will withdraw his unsolicited bid of $97.4 billion to take over OpenAI if its board of directors stops the company’s conversion into a for-profit entity, a report said.

The development reported by The Wall Street Journal comes after OpenAI CEO Sam Altman rejected Musk’s offer earlier this week, saying that the SpaceX and Tesla CEO is “probably just trying to slow us down” and that OpenAI – the maker of ChatGPT – is not for sale.

“If [the] OpenAI board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid,” Musk’s lawyers wrote in a court filing Wednesday, according to the newspaper.

Both Musk and Altman started OpenAI as a charity in 2015. When Musk left, Altman became the chief executive and the company established a for-profit subsidiary to raise money from investors and Microsoft. Now, Altman is looking to turn the subsidiary into a traditional company, The Wall Street Journal reported.

ALTMAN SAYS MUSK ‘TRYING TO SLOW US DOWN,’ OPENAI NOT FOR SALE

OpenAI CEO Sam Altman, left, has rejected a bid from SpaceX and Tesla CEO Elon Musk, right, to purchase his company. (Sean Gallup/Andrew Harnik/Getty Images / Getty Images)

OpenAI did not immediately respond Thursday to a request for comment from FOX Business.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk reportedly said in a statement when he launched his bid. “We will make sure that happens.”

Musk was a co-founder of OpenAI but cut ties with the company in 2018 after he was unable to persuade its other leaders to put him in charge of a for-profit OpenAI entity or merge the company with Tesla.

MUSK CLAIMS THERE ARE 150-YEAR-OLDS RECEIVING SOCIAL SECURITY BENEFITS

Open AI CEO Sam Altman speaks during a talk session with SoftBank Group CEO Masayoshi Son at an event titled “Transforming Business through AI” in Tokyo, Japan, on Feb. 3. (Tomohiro Ohsumi/Getty Images / Getty Images)

“Look, OpenAI is not for sale,” Altman told Bloomberg on the sidelines of the AI Action Summit in Paris on Tuesday. “Elon tries all sorts of things for a long time. This is this week’s episode.”

“I think he is probably just trying to slow us down. He obviously is a competitor. He’s working hard to raise a lot of money for [his startup] xAI and they are trying to compete with us from a technological perspective from getting the product into the market and I wish he would just compete by building a better product but I think there has been a lot of tactics, you know many, many lawsuits, all sorts of other crazy stuff and now this,” Altman added. “And we’ll try to just put our head down and keep working.”

Elon Musk, left, and Sam Altman are seen onstage together during an event at the Vanity Fair New Establishment Summit in San Francisco, Calif., in October 2015. (Michael Kovac/Getty Images for Vanity Fair / Getty Images)

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Altman also responded to Musk’s offer on X, saying, “no thank you but we may buy twitter for $9.74 billion if you want.”

FOX Business’ Greg Wehner contributed to this report.

February 13, 2025
Musk-led group of investors submit unsolicited bid of $97.4 to take over OpenAI

OpenAI CFO Sarah Friar explains how AI is taking center stage at Davos, what the Stargate project means for the macroeconomy and details new products for key customers.

A group of investors led by billionaire Elon Musk has offered $97.4 million to take control of OpenAI, fueling his feud with Sam Altman over ChatGPT, which is behind the artificial intelligence (AI) company, according to reports.

The Wall Street Journal reported that Marc Toberoff, Musk’s attorney, said he submitted a bid on Monday to the board of directors at OpenAI.

ELON MUSK AND TECH LEADER SAM ALTMAN GET INTO WAR OF WORDS OVER AI INFRASTRUCTURE PROJECT

Elon Musk and OpenAI CEO Sam Altman. Musk previously helped launch OpenAI, which Altman is now the CEO of, but no longer has any connection to the company. (Getty Images / Getty Images)

While the offer was unsolicited, it could interfere with Altman’s plans for the future of OpenAI, which included turning it into a profitable company. He also reportedly planned to spend up to $500 billion in infrastructure to support artificial intelligence through Stargate, a joint venture Altman is part of.

Both Musk and Altman are battling it out in court over the future direction of OpenAI.

This is a developing story. Please check back for updates.

February 10, 2025
SoftBank in talks to invest as much as $25 billion in OpenAI

Core Scientific CEO Adam Sullivan says AI is a bipartisan issue on Varney & Co.

SoftBank is in talks to invest $15 billion to $25 billion in OpenAI, potentially deepening the relationship between the two companies that are already planning a significant artificial-intelligence infrastructure initiative.

Some of that equity investment could be used for OpenAI’s commitment to Stargate, a joint venture with SoftBank and others it announced last week at the White House, according to a person familiar with the matter. Stargate, which also includes Oracle and the United Arab Emirates investment fund MGX, intends to invest as much as $500 billion in AI data centers for use by OpenAI over the next four years.

Softbank is in talks to invest as much as $25 billion in ChatGPT maker OpenAI (Photo by Dilara Irem Sancar/Anadolu via Getty Images / Getty Images)

The deal would make SoftBank OpenAI’s biggest investor, displacing Microsoft, which has committed nearly $14 billion to date. However, SoftBank would have a smaller stake in OpenAI’s for-profit division, as Microsoft invested earlier, the person familiar with the matter said.

SoftBank’s investment in OpenAI would be distinct from its own commitment to put some $15 billion into Stargate, according to the knowledgeable person.

OPENAI ANNOUNCES US NATIONAL LABORATORIES PARTNERSHIP, PLANS TO SUPPORT WORK ON NUCLEAR SECURITY AND MORE

The Financial Times reported previously on the investment talks.

If the deal comes together, it would create a tight partnership between two of the biggest names in global business: OpenAI Chief Executive Sam Altman and SoftBank CEO Masayoshi Son. The men have been growing closer over the past year and discussed a plan Altman had to overhaul the global semiconductor industry.

U.S. President-elect Donald Trump delivers remarks next to Chairman and CEO of SoftBank Masayoshi Son, at Mar-a-Lago in Palm Beach, Fla., on Monday, Dec. 16. (Reuters/Brian Snyder / Reuters)

Son, who has said he uses ChatGPT every day, told shareholders in June 2023 that he wanted SoftBank to “lead the AI revolution.” In October, his firm made its first investment in OpenAI, putting $500 million into the U.S. developer’s $6.6 billion funding round.

TRUMP, SOFTBANK CEO ANNOUNCE $100B INVESTMENT TO CREATE 100,000 AMERICAN JOBS

In addition to its commitment to Stargate, OpenAI needs investment funds to cover its multibillion-dollar annual losses, as it spends heavily to develop cutting-edge technology and deals with intense price competition against rivals such as Google and Anthropic, as well as free, open-source technology from Meta Platforms and China’s DeepSeek.

At the same time it is growing closer to SoftBank, OpenAI has been drifting apart from its longtime closest partner: Microsoft. In addition to its investments, Microsoft was until this month the exclusive provider of cloud-computing services for OpenAI.

Microsoft CEO Satya Nadella (R) speaks as OpenAI CEO Sam Altman (L) looks on during the OpenAI DevDay event on November 06, 2023 in San Francisco, California. Altman delivered the keynote address at the first ever Open AI DevDay conference. (Justin Sullivan/Getty Images / Getty Images)

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ChatGPT’s launch in late 2022 significantly escalated OpenAI’s need for chips to develop and operate its products. Over the past two years, OpenAI has said Microsoft wasn’t providing it with enough cloud capacity, The Wall Street Journal previously reported.

The two companies recently revised their deal allowing OpenAI to work with other providers, including Stargate, though Microsoft retains the right of first refusal.

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Microsoft CEO Satya Nadella said on an earnings call with analysts Wednesday that he remains happy with his relationship with OpenAI, but his company’s investments in data centers are “fungible” and can be used by different customers.

January 30, 2025
OpenAI announces US National Laboratories partnership, plans to support work on nuclear security and more

OpenAI CEO Sam Altman speaks after President Trump announces Stargate.

OpenAI, the company behind ChatGPT, has announced an agreement to collaborate with U.S. National Laboratories, indicating that it plans to assist in various fields, including nuclear security.

The company plans to deploy its AI on a supercomputer.

“Under this agreement, OpenAI will work with Microsoft and will deploy o1 or another o-series model on Venado, an NVIDIA supercomputer at Los Alamos National Laboratory (LANL) where it will be a shared resource for researchers from Los Alamos, Lawrence Livermore, and Sandia National Labs,” OpenAI noted.

OPENAI DEBUTS CHATGPT GOV, A NEW VERSION OF THE CHATBOT FOR US GOVERNMENT AGENCIES

The Open AI logo, which represents the American-based artificial intelligence (AI) research organization known for releasing the generative chatbot language model AI ChatGPT and initiating the AI spring, is being displayed at the Mobile World Congres (Joan Cros/NurPhoto via Getty Images)

OpenAI suggested its models will be leveraged in various areas of research.

The company said its models will be used in “Accelerating the basic science that underpins U.S. global technological leadership,” “Identifying new approaches to treating and preventing disease,” “Enhancing cybersecurity and protecting the American power grid,” “Achieving a new era of U.S. energy leadership by unlocking the full potential of natural resources and revolutionizing the nation’s energy infrastructure,” “Improving U.S. security through improved detection of natural and man-made threats, such as biology and cyber, before they emerge,” and “Deepening our understanding of the forces that govern the universe, from fundamental mathematics to high-energy physics.”

TRUMP, OPENAI CEO WEIGH IN ON DEEPSEEK FRENZY

OpenAI CEO Sam Altman sits down with Shannon Bream to discuss the positives and potential negatives of artificial intelligence and the importance of maintaining a lead in the A.I. industry over China.

The company also indicated that it plans to supply support in the area of nuclear security.

“The Labs also lead a comprehensive program in nuclear security, focused on reducing the risk of nuclear war and securing nuclear materials and weapons worldwide. This use case is highly consequential, and we believe it is critical for OpenAI to support it as part of our commitment to national security. Our partnership will support this work, with careful and selective review of use cases and consultations on AI safety from OpenAI researchers with security clearances,” the organization noted.

TRUMP ANNOUNCES LARGEST AI INFRASTRUCTURE PROJECT ‘IN HISTORY’ INVOLVING SOFTBANK, OPENAI AND ORACLE

OpenAI CEO Sam Altman appears during a news conference with U.S. President Donald Trump in the Roosevelt Room of the White House on Jan. 21, 2025 in Washington, D.C. (Andrew Harnik/Getty Images)

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OpenAI noted that the partnership “builds on our successful earlier collaboration⁠ with Los Alamos National Laboratory, where we worked closely with wet labs to assess the risks posed by the most advanced models in creating bioweapons (such as human-designed pandemics). We anticipate that this engagement will lead to broader safety collaborations across a variety of chemical, biological, radiological, and nuclear (CBRN) risks.”

January 30, 2025
Alibaba releases AI model it says rivals DeepSeek, OpenAI, Meta’s top models

General Catalyst Institute President Teresa Carlson joins ‘Mornings with Maria’ to weigh in on China’s DeepSeek and its anticipated impact on the global economy.

Chinese tech giant Alibaba is flexing its muscles in the global race for artificial intelligence (AI) dominance, claiming the latest version of its Qwen 2.5 can take on the top models from rivals both foreign and domestic.

Not to be outdone by the attention surrounding fellow Chinese firm DeepSeek – which rocked the U.S. tech sector this week with its purported emergence as a potential rival to leading American AI companies – Alibaba says its latest offering is superior to them all in nearly every measure.

Alibaba claimed the latest version of its Qwen 2.5 can take on the top models from rivals both foreign and domestic. (Thomas Peter / Reuters Photos)

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Alibaba Holding Group Ltd — ADR

“Qwen 2.5-Max outperforms… almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,” Alibaba’s cloud unit said in an announcement posted on its official WeChat account, referring to OpenAI and Meta’s most advanced open-source AI models.

TECH MOGUL DOUBTS DEEPSEEK CLAIMS, SAYS US MEDIA FELL FOR ‘CCP PROPAGANDA’

Alibaba’s Qwen account on X posted stats indicating how the model stacks up against its competitors, claiming, “It achieves competitive performance against the top-tier models, and outcompetes DeepSeek V3 in benchmarks like Arena Hard, LiveBench, LiveCodeBench, GPQA-Diamond.”

The unusual timing of the Qwen 2.5-Max’s release, on the first day of the Lunar New Year when most Chinese people are off work and with their families, points to the pressure Chinese AI startup DeepSeek’s meteoric rise in the past three weeks has placed on not just overseas rivals, but also its domestic competition.

TRUMP, OPENAI CEO WEIGH IN ON DEEPSEEK FRENZY

The Jan. 10 release of DeepSeek’s AI assistant, powered by the DeepSeek-V3 model, as well as the Jan. 20 release of its R1 model, has shocked Silicon Valley and caused tech shares to plunge, with the Chinese startup’s purportedly low development and usage costs prompting investors to question huge spending plans by leading AI firms in the U.S.

SlateStone Wealth chief market strategist Kenny Polcari breaks down the impact of DeepSeek on U.S. markets and how tech companies will react to the Chinese A.I. model.

But DeepSeek’s success has also led to a scramble among its domestic competitors to upgrade their own AI models.

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Two days after the release of DeepSeek-R1, TikTok owner ByteDance released an update to its flagship AI model, which it claimed outperformed Microsoft-backed OpenAI’s o1 in AIME, a benchmark test that measures how well AI models understand and respond to complex instructions.

This echoed DeepSeek’s claim that its R1 model rivaled OpenAI’s o1 on several performance benchmarks.

Reuters contributed to this report.

January 29, 2025
Fox News AI Newsletter: DeepSeek underscores US-China race for AI dominance, OpenAI says

Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements.

IN TODAY’S NEWSLETTER:

– DeepSeek is the newest front in the AI competition between the US and China

– Trump, OpenAI CEO weigh in on DeepSeek frenzy

– Willing to pay $175,000 for a life-size robot friend that remembers everything about you?

CRITICAL FIGHT: DeepSeek’s release of a high-profile new AI model underscores a point we at OpenAI have been making for quite some time: the U.S. is in a competition with the Chinese Communist Party that will determine whether democratic AI wins over the Chinese Communist Party’s authoritarian version of the technology. The U.S. must come out on top–and the stakes could not be higher.

‘WAKE-UP CALL’: President Donald Trump and OpenAI CEO Sam Altman both joined in on the buzz surrounding Chinese artificial intelligence startup DeepSeek, which sent the technology sector into turmoil on Monday following its emergence as a potential rival to leading U.S.-based firms.

Melody the life-sized AI robot (Realbotix)

ROBOT FRIEND MELODY: In a world where loneliness is becoming increasingly prevalent, researchers have taken a bold step forward by introducing Melody, a life-sized artificial intelligence robot designed to combat this growing epidemic.

AI RACE: China-based artificial intelligence startup DeepSeek’s release of new AI models that rival those made by leading U.S. tech firms roiled markets on Monday and prompted concerns about U.S. firms losing their edge in the AI race to Chinese rivals.

ROBOTIC DOG COMPANION: U.S. robotics company Tombot has introduced “Jennie,” an innovative AI-powered robotic pet designed to provide comfort and companionship to those facing cognitive health challenges.

AI-powered robotic dog (Tombot)

Subscribe now to get the Fox News Artificial Intelligence Newsletter in your inbox.

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Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future with Fox News here.

This article was written by Fox News staff.

January 29, 2025
OpenAI exec responds to Musk, Altman trading barbs over Stargate: We’re at ‘the tip of the iceberg’

OpenAI CFO Sarah Friar explains how AI is taking center stage at Davos, what the Stargate project means for the macroeconomy and details new products for key customers.

OpenAI’s chief financial officer is setting the record straight on where funding stands for President Donald Trump’s breakthrough artificial intelligence (AI) project.

“I’m close to this deal, I’ve been working on it. If I look tired, this deal is doing it for me. And I feel really good about where we’re at,” Sarah Friar said in a “Mornings with Maria” interview Thursday from the World Economic Forum in Davos, Switzerland.

“I think on Elon, look, he’s a competitor,” she added, “but I want us to compete for the right things.”

On Tuesday, President Trump announced a massive $500 billion infrastructure project called Stargate. Major names including Softbank, OpenAI and Oracle plan to join forces to build data centers in the U.S. for the further development of AI, which holds the promise of increasing productivity by automating work.

ELON MUSK’S D.O.G.E. FACES FIRST LEGAL CHALLENGE WITHIN HOURS OF TRUMP INAUGURATION

The initial investment is expected to be $100 billion and could reach five times that sum. Microsoft, NVIDIA, investor MGX and the chipmaker Arm are also partners in the project.

OpenAI CFO Sarah Friar is defending the company’s stance that they have the financial backing to fund the Stargate AI project. (Getty Images)

But Tesla and SpaceX CEO – and now Department of Government Efficiency co-chair – Elon Musk took to X to express doubts about OpenAI’s ability to financially back Stargate.

“They don’t actually have the money,” Musk posted on X in response to an OpenAI post touting Stargate. “SoftBank has well under $10B secured. I have that on good authority.”

Backing OpenAI CEO Sam Altman’s assertion that Musk is “wrong,” Friar also encouraged Musk to be supportive of Trump’s AI plans despite the Musk-Altman fractured relationship.

President Trump makes a major infrastructure announcement on his second day in office.

“Let’s compete for great outcomes for consumers and businesses. Let’s compete for getting investment and jobs into the United States and also for our allies. And let’s compete on making sure that we are driving the right outcomes from a security perspective, too,” the CFO said Thursday.

“And Elon knows that,” Friar pressed, “because in the end, we are at the tip of the iceberg here. We are scratching the surface of what’s coming. This is the A.I. era. And so, getting caught in distractions amongst ourselves just feels like it’s going to slow down the bigger outcome that we’re all looking for.”

A source familiar with Stargate told FOX Business that Stargate is prepared to deploy the $100 billion immediately, and that the companies in the venture are in a good position to make the investments.

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OpenAI CEO Sam Altman and Anduril Industries co-founder and CEO Brian Schimpf discuss the future of A.I. and the ethical use of technology on ‘Making Money.’

Trying to dampen any tensions, Friar argued that Musk agrees with OpenAI on three core needs for the industry: “amazing people,” and computer and data power.

“That’s why being mission-driven is incredibly important for us, right?” the CFO posited. “We want to make sure we have access to all of those, and we will continue to run the company the way that we see best to get that outcome.”

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FOX Business’ Michael Dorgan contributed to this report.

January 23, 2025