The Musk-led group aims to govern OpenAI.
Elon Musk, spearheading an investor group, has proposed a whopping 97.4 billion dollar deal to acquire OpenAI, the organization behind popular AI model, ChatGPT. Musk, a co-founder of OpenAI, expressed his hope for the company to return to its roots as an open-source and security-focused entity. The Wall Street Journal reported that Musk's AI company, xAI, is backing this proposal.
Despite leaving OpenAI in 2018, before ChatGPT's fame, Musk established xAI as a competitor. Now, OpenAI, originally founded as a non-profit AI research institute in 2015, is aiming for a transformation into a profit-making entity due to financial necessities. Musk's lawsuit against OpenAI's restructuring plans of late is a testament to his objections.
The offer could complicate OpenAI's business, as CEO Sam Altman sarcastically responded, "No thanks, but we'll buy Twitter for 9.74 billion if you want to." The ownership tussle hasn't resulted in any official statements from Microsoft, which has been OpenAI's primary investor, placing a bet of over 10 billion dollars since 2019. OpenAI's most recent funding round, held in October 2022, valued the company at a staggering 157 billion dollars.
The Impact of Musk's Proposal on OpenAI's Partnership with Microsoft
The acquisition proposal could have several consequences for OpenAI's relationship with Microsoft due to significant investments, technical partnerships, and regulatory scrutiny. The partnership includes Azure exclusivity, Microsoft's hefty investment, and revenue-sharing agreements, which could be impacted by a change in ownership. A regulatory investigation by the FTC, which stems from concerns about Microsoft's dominance, might further intensify with Musk's involvement. The alignment of their technological strategies could also experience changes depending on the acquisition's outcome.
Regarding the Commission's previous recommendations, it's important to consider the potential impact on OpenAI's partnerships and regulatory scrutiny, given the significant investments and collaborations with entities like Microsoft.
The Commission's past suggestions could provide valuable guidelines as OpenAI navigates the potential implications of Musk's acquisition proposal on its relationship with Microsoft.
