Musk-led group makes $97.4 billion bid for control of OpenAI

Published On Feb 10, 2025, 3:47 PM

A group led by Elon Musk has made a bold bid of $97.4 billion to take control of OpenAI, aiming to steer the organization back toward its original mission of open-source AI development. This bid comes amid ongoing tensions and legal battles between Musk and current OpenAI CEO Sam Altman. Musk argues that OpenAI has strayed from its nonprofit roots and has become overly profit-focused. OpenAI is in the process of transitioning to a for-profit organization to secure necessary capital for AI advancements.

Stock Forecasts

NVDA

Positive

Elon Musk's involvement in the AI sector, through xAI and the bid for OpenAI, could bolster investor confidence in AI technologies and related companies, signaling potential growth in this niche. However, the legal challenges and uncertainty surrounding the deal could create volatility in involved stocks.

AAPL

Negative

Musk's pursuit of OpenAI could lead to increased scrutiny on AI companies and potentially regulatory challenges, which may negatively affect sentiment about AI stocks in the short term as markets weigh the implications.

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