22 Jul OpenAI claims Musk Tried To Get Zuckerberg To Join His Bid To Buy ChatGPT Maker
Marc Toberoff, Musk’s attorney in the case, didn’t respond to a request for comment. Musk started xAI in 2023 and was pushing for it to be a direct competitor to OpenAI. Musk later sued OpenAI, alleging a breach of contract, and tried to stop OpenAI from converting to a for-profit company. Essential digital access to quality FT journalism on any device. A public feud between Musk and Zuckerberg broke out in 2023, as reports emerged that Meta was building a competitor to take on Twitter.
What Do We Know About Musk’s Unsolicited Bid For Openai?
- Elon Musk, the world’s richest person, asked Meta CEO Mark Zuckerberg to help him finance a $97.4 billion takeover of OpenAI in early 2025, court filings on Thursday revealed.
- Meta has argued that OpenAI’s requests for documents are overly burdensome, and that OpenAI should obtain relevant communications from Musk and xAI, instead.
- In response to legal questions served by OpenAI, Musk “identified Mark Zuckerberg” as an individual he “communicated” with regarding “potential financing arrangements or investments” in connection with the ChatGPT-maker, the filing said.
- Musk’s own apparent approach to Zuckerberg in his bid for OpenAI defies nearly a decade of hostility between the two tech founders, beginning in 2016 when a SpaceX rocket explosion destroyed a Facebook satellite on board.
- The statement in the filing said that Meta has been “spending heavily to develop its own Al capabilities” and has been “offering pay packages of $100 million or more to leading Al researchers and attempting to poach OpenAI employees.”
- The filing noted that neither Zuckerberg nor Meta signed Musk’s letter of intent or participated in Musk’s $97.4 billion bid.
Beyond feeling as though OpenAI had strayed from the mission he helped create for it, Musk had other reasons to want to best the company. He left the startup’s board in 2018, the year before Microsoft pumped $1 billion into the company. Months after Microsoft announced another $10 billion investment in OpenAI in 2023, Musk unveiled xAI as an alternative to ChatGPT. Analyze the market sentiments & identify the trend reversal for strategic decisions. Check the score based on the company’s fundamentals, solvency, growth, risk & ownership to decide the right stocks. Get to know where the market bulls are investing to identify the right stocks.
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When Musk floated his proposal to buy OpenAI in February, he was incensed that the company and Altman, OpenAI’s CEO, were pushing to transform the business into a for-profit entity. Altman and Musk, who were longtime friends, have become bitter adversaries since OpenAI’s emergence as a leader in generative AI with billions of dollars in funding from Microsoft. Complete digital access to quality FT journalism with expert analysis from industry leaders.
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Elon Musk’s attempt to acquire OpenAI earlier this year involved an unsolicited bid of nearly $100 billion, with Mark Zuckerberg considered as a potential financier. Despite Musk’s efforts to enlist Zuckerberg and other wealthy allies, the bid was ultimately rejected by OpenAI’s board in February. In its counter claims, OpenAI has alleged that Musk and xAI’s “sham bid” harmed its business and that Musk has engaged in “harassment” through litigation and attacks on social media and in the press. Elon Musk, the world’s richest person, asked Meta CEO Mark Zuckerberg to help him finance a $97.4 billion takeover of OpenAI in early 2025, court filings on Thursday revealed.
The filing noted that neither Zuckerberg nor Meta signed Musk’s letter of intent or participated in Musk’s $97.4 billion bid. The statement in the filing said that Meta has been “spending heavily to develop its own Al capabilities” and has been “offering pay packages of $100 million or more to leading Al researchers and attempting to poach OpenAI employees.” As part of its complaint, OpenAI has filed to subpoena Meta for communications between the company, its CEO and Musk about the bid. The filing is part of a legal case between Musk and OpenAI that was initiated last year.
What Do We Know About Musk And Openai’s Legal Battle?
Musk’s own apparent approach to Zuckerberg in his bid for OpenAI defies nearly a decade of hostility between the two tech founders, beginning in 2016 when a SpaceX rocket explosion destroyed a Facebook satellite on board. The beef continued through last year, when Musk challenged Zuckerberg to a cage match. The filing also subpoenaed Meta to disclose documentation of correspondence with Musk or xAI regarding an intent to buy the startup. Manage your wealth better with in-depth insights & updates on finance. Meta has argued that OpenAI’s requests for documents are overly burdensome, and that OpenAI should obtain relevant communications from Musk and xAI, instead.
Responding to news of the platform, which eventually launched as Threads, Musk joked he’d be “up for a cage match” if Zuckerberg was willing. Meta and Musk’s attorney Marc Toberoff did not respond to Fortune’s request for comment. Meta, on the other hand, has carried out its own campaign to gain an edge over OpenAI, restructuring its AI division with a focus on building a superintelligence team and poaching key AI architects, including Wreck Bet review former OpenAI employees. According to Altman, Meta offered $100 million signing bonuses to recruit talent from its rival.
The case is proceeding in a federal court in Northern California, and a judge recently said OpenAI can move ahead with counter claims against Musk, who co-founded OpenAI as a non-profit with Sam Altman and others in 2015. Complete digital access to quality analysis and expert insights, complemented with our award-winning Weekend Print edition. Then €69 per month.Complete digital access to quality FT journalism on any device. Meta will likely try to narrow the scope of the subpoena because it takes effort and time to turn over documentation, and because the company may feel OpenAI’s grievances should remain with Musk, Martella said.
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- Musk alleged OpenAI, which is in the process of becoming a for-profit entity, has reneged on the original agreement.
- He left the startup’s board in 2018, the year before Microsoft pumped $1 billion into the company.
- Meta will likely try to narrow the scope of the subpoena because it takes effort and time to turn over documentation, and because the company may feel OpenAI’s grievances should remain with Musk, Martella said.
- On Thursday as part of the claims, OpenAI said in a statement to the court that Musk had approached Zuckerberg regarding a letter of intent “about potentially financial arrangements or investors” in a bid for a hostile takeover of OpenAI.
Earlier this month, a judge allowed OpenAI to move forward with counterclaims against Musk. On Thursday as part of the claims, OpenAI said in a statement to the court that Musk had approached Zuckerberg regarding a letter of intent “about potentially financial arrangements or investors” in a bid for a hostile takeover of OpenAI. Neither Meta nor Zuckerberg signed the letter of intent, according to the filing.
In a statement to the court published Thursday, OpenAI said that when Musk and xAI were trying to form a consortium of investors to finance a takeover, they approached Zuckerberg with a letter of intent and asked “about potential financing arrangements or investments.” Musk, one of the cofounders of OpenAI, filed a lawsuit against the company and its CEO Sam Altman last year, alleging they undermined OpenAI’s foundational goal of developing an open-source AGI (Artificial General Intelligence) to “benefit humanity” in favor of maximizing profits. Musk alleged OpenAI, which is in the process of becoming a for-profit entity, has reneged on the original agreement. In response, OpenAI’s leadership claimed Musk had recognized back in 2017 that a “for-profit entity” would be needed to achieve OpenAI’s goals of creating AGI and he even attempted to become the CEO and major equity holder of such an entity. The company said it could not agree to Musk’s terms and the billionaire then chose to leave OpenAI in February 2018. Earlier this year, OpenAI countersued Musk, alleging the billionaire was running malicious campaigns against the company.