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DeepSeek has significantly impacted technology stocks, including the cryptocurrency market, in January. An artificial intelligence product built at a lower cost has gained considerable attention, as cryptocurrencies have been priced similarly to tech stocks. Now, Elon Musk is making a substantial offer to OpenAI, the leading player in AI.
Elon Musk and OpenAI
Under Musk’s leadership, a consortium of investors is proposing a $97.4 billion offer to acquire the nonprofit organization controlling OpenAI. According to reports shared by the WSJ, this proposal was presented to the board today.
Musk plans to transform the company into a nonprofit and intends to spend up to $500 billion on AI infrastructure through a joint venture called Stargate. Musk, who was involved in the project during OpenAI’s early days, later departed amid discussions of conflicts of interest. Musk’s lawyer, Toberoff, stated, “It is time for OpenAI to return to being the open-source, safety-focused force for good it once was. We will ensure this happens.”
OpenAI’s Response
As the article was being prepared, Sam Altman responded to Musk, stating, “No thanks, but we can buy Twitter for $9.74 billion if you want.” Musk replied by calling this a “scam.”
In October, OpenAI raised $6.6 billion with a valuation of $157 billion. Reports from January suggest the company is negotiating to raise up to $40 billion, which could boost its valuation above $300 billion. Japanese SoftBank is also working with a target to raise between $15 billion and $25 billion.
With Musk at the helm, OpenAI could embark on a more thrilling adventure. His persuasive power due to successes with SpaceX, Twitter, and other ventures may overshadow competitors like DeepSeek.
If you’ve recently used DeepSeek, you may notice it hasn’t delivered the impressive results seen in earlier reports. Despite the billions spent, OpenAI continues to operate more robustly and stably.
