Altman: OpenAI Board Yet to See Official Musk Offer

As the tech world watches the brewing battle between Elon Musk and Sam Altman, the CEO of OpenAI has shared some insights with his staff regarding Musk's unsolicited offer to acquire the company. In a memo obtained by WIRED, Altman stated that the board of OpenAI has not yet received an official offer from Musk and his associates.

Altman's memo comes amidst a backdrop of escalating tensions between the two tech titans. Musk, who co-founded OpenAI with Altman in 2015, has been critical of the company's shift towards a for-profit structure and has sued OpenAI multiple times, alleging that it has strayed from its original mission. Musk's latest move, an unsolicited offer to buy OpenAI for $97.4 billion, has further fueled the feud.

In his memo, Altman expressed skepticism about Musk's intentions, stating that the offer is not about OpenAI's mission or values but rather a tactic aimed at weakening the company. Altman also acknowledged the potential impact of Musk's offer on OpenAI's ongoing negotiations with SoftBank regarding a $40 billion investment.

Musk's offer sets a new floor value for OpenAI, which could influence the valuation discussions with SoftBank. If OpenAI accepts Musk's offer, it would be difficult for them to justify a lower valuation in the SoftBank deal. This could potentially lead to a higher valuation for OpenAI in the SoftBank investment, which could be beneficial for the company and its existing investors.

However, the lack of an official offer from Musk also presents challenges for OpenAI. Without specific terms and conditions, the board cannot effectively evaluate the offer or compare it to other potential options, such as the proposed for-profit conversion. Additionally, the uncertainty surrounding Musk's offer may affect OpenAI's ongoing negotiations with SoftBank, potentially leading to less favorable terms for the company.

The board's consideration of Musk's offer could also influence the valuation of OpenAI's assets and the terms of its planned for-profit conversion. Musk's offer establishes a floor for the value of OpenAI's assets, making it more challenging for the company to spin off its assets into a for-profit company controlled by Altman at a lower valuation. The board must also consider the probability that Musk will actually follow through on his offer, as well as the potential impact on OpenAI's public mission and purpose.

In conclusion, the lack of an official offer from Musk presents both opportunities and challenges for OpenAI. While the offer sets a new floor value for the company and could potentially lead to a higher valuation in the SoftBank investment, the uncertainty surrounding the offer and the potential impact on OpenAI's ongoing negotiations and for-profit conversion plans require careful consideration by the board. As the situation unfolds, it will be interesting to see how OpenAI navigates this complex landscape and ultimately decides the fate of the company.