In a surprising turn of events, a consortium led by Elon Musk said on Monday that it has offered $97.4 billion to buy the nonprofit that controls OpenAI. Marc Toberoff, Musk’s attorney, confirmed that he submitted the bid for all OpenAI’s assets to its board.
The offer is a twist to Musk and OpenAI CEO Sam Altman’s rift that began last August when Musk filed a lawsuit against OpenAI. The lawsuit accused the company of putting profits before its initial nonprofit mission which aimed to advance AI in a way that benefits humanity.
The two prominent figures of the tech world are still involved in a legal battle over the future of this AI startup.
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Analysts have been skeptical of Musk’s move ever since it came to light.
“I think it’s fair to be pretty suspicious of this considering that he has a competitor himself… which is structured as a for-profit company, so I think there’s more than meets the eye here”.
– Christie Pitts, a tech investor in San Francisco, told the BBC.
Sam Altman has this to say about the bid:
Musk was “a competitor who is not able to beat us in the market and you know, instead is just trying to say, like, ‘I’m gonna buy this’ with total disregard for the mission”.
– Altman told Axios
Plus, this is what Altman wrote on X as a reply to Musk’s bid:
“No thank you but we will buy twitter for $9.74 billion if you want.”
OpenAI was cofounded by Musk and Altman in 2018 as a non-profit, with Musk leaving before the company took off. Musk’s lawsuit against OpenAI and Altman says that the founders originally approached him to fund a nonprofit focused on developing AI to benefit humanity. However, it was now focused on making money.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”
-Elon Musk
On the contrary, Altman said that he has no interest in the offer, stating that OpenAI is not for sale.
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10. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On February 11, Bank of America reiterated the stock as “Buy” with a $125 price target, stating that the company is well positioned for “DOGE priorities.” The Department of Government Efficiency (DOGE) is a temporary organization that aims to modernize federal technology and software to improve government efficiency. The firm believes Palantir can help organizations streamline their operations, cut down costs, and improve decision-making through AI.
“For PLTR , we see the focus on operationalizing data, establishing high-fidelity digital enterprise-twins, and accelerating decision making as a winning formula. AI and data analytics are critical to unlock timely and better informed decision making – from cutting duplicative contracts, to improved logistics, to autonomous systems, to command, control and communications on the battlefield”.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products. On February 11, Oppenheimer initiated coverage of the stock with an “Outperform” rating and a $320 price target. The firm said it sees “sustained ‘double-digit’ revenue growth” for IBM.
“We are initiating coverage of International Business Machines (IBM) with an Outperform rating and a $320 price target”.
Oppenheimer is bullish on the stock as it anticipates strong revenue growth in its software business, primarily driven by its Red Hat offerings. It also anticipates a rebound in consulting in the second half of 2025 with recovery in application development and management. IBM also enjoys “optionality” with the creation and management of artificial intelligence applications. Therefore, the analyst told investors in a research note that these drivers are likely to lead to “strong expansion activity” with existing customers, as well as boost continued gross and pre-tax margin expansion.
