A consortium led by Elon Musk said Monday it has offered $97.4 billion to buy the nonprofit that controls OpenAI, another salvo in the billionaire’s fight to block the artificial intelligence startup from transitioning to a for-profit firm.

Musk’s bid is likely to ratchet up longstanding tensions with OpenAI CEO Sam Altman over the future of the startup at the heart of a boom in generative AI technology. Altman on Monday promptly posted on X: “no thank you but we will buy twitter for $9.74 billion if you want.”

Musk cofounded OpenAI with Altman in 2015 as a nonprofit, but left before the company took off. He founded the competing AI startup xAI in 2023.

Musk, the CEO of Tesla and owner of tech and social media company X, is a close ally of President Donald Trump. He spent more than a quarter of a billion dollars to help elect Trump, and leads the Department of Government Efficiency, a new arm of the White House tasked with radically shrinking the federal bureaucracy. Musk recently criticized a $500 billion OpenAI-led project announced by Trump at the White House.

OpenAI is now trying to transition into a for-profit from a nonprofit entity, which it says is required to secure the capital needed for developing the best AI models.

Musk sued Altman and others in August last year, claiming they violated contract provisions by putting profit ahead of the public good in the push to advance AI. In November, he asked a U.S. district judge for a preliminary injunction blocking OpenAI from converting to a for-profit structure.

Musk’s lawsuit against OpenAI and Altman says the founders originally approached him to fund a nonprofit focused on developing AI to benefit humanity, but that 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,” Musk said in a statement Monday. “We will make sure that happens.”

Musk and OpenAI backer Microsoft did not immediately respond to requests for comment.

“Musk’s bid puts another wrinkle into OpenAI’s quest to remove the nonprofit’s control over its for-profit entity,” said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits.

“This bid sets a marker for the valuation of the nonprofit’s economic interests,” she said. “If OpenAI values the nonprofit’s interests at less than what Musk is offering, then they would have to show why.”

The consortium led by Musk includes his AI startup xAI, Baron Capital Group, Valor Management, Atreides Management, Vy Fund III, Emanuel Capital Management, and Eight Partners.

XAI could merge with OpenAI following a deal, according to The Wall Street Journal which first reported Musk’s offer earlier Monday. XAI recently raised $6 billion from investors at a valuation of $40 billion, sources have told Reuters.

Throwing a wrench

“This (bid) is definitely throwing a wrench in things,” said Jonathan Macey, a Yale Law School professor specializing in corporate governance.

“The nonprofit is supposed to take money to do whatever good deeds, and if OpenAI prefers to sell it to somebody else for less money, it’s a concern for protecting the interests of the beneficiaries of the not-for-profit. If this was a public company, plaintiffs’ lawyers would justifiably be lining up down the block to sue that transaction.”

OpenAI was valued at $157 billion in its last funding round, cementing its status as one of the most valuable private companies in the world. SoftBank Group is in talks to lead a funding round of up to $40 billion in OpenAI at a valuation of $300 billion, including the new funds, Reuters reported in January.

Aside from any antitrust implications, a deal this size would need Musk and his consortium to raise enormous funds.

“Musk’s offer to buy OpenAI’s nonprofit should significantly complicate OpenAI’s current fundraising and the process of converting into a for-profit corporation,” said Gil Luria, analyst at D.A. Davidson.

“The offer seems to be backed by more credible investors … OpenAI may not be able to ignore it. It will be the fiduciary responsibility of OpenAI’s board to decide whether this is a better offer, which could call into question the offer from SoftBank.”

Musk’s stock in Tesla is valued at roughly $165 billion, according to LSEG data, but his leverage with banks is likely to be thin after his $44 billion buyout of the social media platform that was called Twitter in 2022.
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PARIS — In front of political and tech leaders gathered at a summit in Paris, French President Emmanuel Macron called for a strategy on Monday to make up for the delay in France and Europe in investing in artificial intelligence (AI) but was faced with a “counter-summit” that pointed out the risks of the technology. 

The use of chatbots at work and school is destroying jobs, professions and threatening the acquisition of knowledge, said union representatives gathered at the Theatre de la Concorde located in the Champs-Elysees gardens, less than a kilometer from the venue of the Summit for Action on Artificial Intelligence. 

Habib El Kettani, from Solidaires Informatique, a union representing IT workers, described an “automation already underway for about ten years,” which has been reinforced with the arrival of the flagship tool ChatGPT at the end of 2022. 

“I have been fighting for ten years to ensure that my job does not become an endangered species,” said Sandrine Larizza, from the CGT union at France Travail, a public service dedicated to the unemployed. 

She deplored “a disappearance of social rights that goes hand in hand with the automation of public services,” where the development of AI has served, according to her “to make people work faster to respond less and less to the needs of users, by reducing staff numbers.” 

Loss of meaning 

“With generative AI, it is no longer the agent who responds by email to the unemployed person but the generative AI that gives the answers with a multitude of discounted job offers in subcontracting,” said Larizza. 

This is accompanied by “a destruction of our human capacities to play a social role, a division into micro-tasks on the assembly line and an industrialization of our professions with a loss of meaning,” she said, a few days after the announcement of a partnership between France Travail and the French startup Mistral. 

“Around 40 projects” are also being tested “with postal workers,” said Marie Vairon, general secretary of the Sud PTT union of the La Poste and La Banque Postale group. 

AI is used “to manage schedules and simplify tasks with a tool tested since 2020 and generalized since 2023,” she said, noting that the results are “not conclusive.” 

After the implementation at the postal bank, La Banque Postale, of “Lucy,” a conversational robot handling some “300,000 calls every month,” Vairon is concerned about a “generative AI serving as a coach for bank advisers.” 

‘Students are using it’ 

On the education side, “whether we like it or not, students are using it,” said Stephanie de Vanssay, national educational and digital adviser of the National Union of Autonomous Unions (UNSA) for primary and secondary school. 

“We have indifferent teachers, worried teachers who are afraid of losing control and quality of learning, skeptics, and those who are angry about all the other priorities,” she said. 

Developing the critical thinking of some 12 million students is becoming, in any case, “an even more serious concern and it is urgent to explain how to use these tools and why,” de Vanssay said. 

The Minister of National Education Elisabeth Borne announced on Thursday the launch of a call for tenders for an AI for teachers, as well as a charter of use and training for teachers. 

“No critical thinking without interactions and without helping each other to think and progress in one’s thinking, which requires intermediation,” said Beatrice Laurent, national secretary of UNSA education. “A baby with a tablet and nursery rhymes will not learn to speak.”
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PARIS — Major world leaders are meeting for an AI summit in Paris, where challenging diplomatic talks are expected as tech titans fight for dominance in the fast-moving technology industry.

Heads of state, top government officials, CEOs and scientists from around 100 countries are participating in the two-day international summit from Monday.

High-profile attendees include U.S. Vice President JD Vance, on his first overseas trip since taking office, and Chinese Vice Premier Zhang Guoqing.

“We’re living a technology and scientific revolution we’ve rarely seen,” French President Emmanuel Macron said Sunday on national television France 2.

France and Europe must seize the “opportunity” because AI “will enable us to live better, learn better, work better, care better and it’s up to us to put this artificial intelligence at the service of human beings,” he said.

Vance’s debut abroad

The summit will give some European leaders a chance to meet Vance for the first time. The 40-year-old vice president was just 18 months into his time as Ohio’s junior senator when Donald Trump picked him as his running mate.

Vance was joined by his wife Usha and their three children — Ewan, Vivek and Mirabel — for the trip to Europe. They were greeted on French soil Monday morning by Manuel Valls, the minister for Overseas France, and the U.S. Embassy’s charge d’affaires, David McCawley.

On Tuesday, Vance will have a working lunch with Macron, with discussions on Ukraine and the Middle East on the menu.

Vance, like President Donald Trump, has questioned U.S. spending on Ukraine and the approach to isolating Russian President Vladimir Putin. Trump promised to end the fighting within six months of taking office.

Vance will attend later this week the Munich Security Conference, where he may meet Ukrainian President Volodymyr Zelenskyy.

Leaders in Europe have been watching carefully Trump’s recent statements on threats to impose tariffs on the European Union, take control of Greenland and his suggestion that Palestinians clear out Gaza once the fighting in the Israel-Hamas conflict ends — an idea that’s been flatly rejected by Arab allies.

Fostering AI advances

The summit, which gathers major players such as Google, Microsoft and OpenAI, aims at fostering AI advances in sectors like health, education, environment and culture.

A global public-private partnership named “Current AI” is to be launched to support large-scale initiatives that serve the general interest.

The Paris summit “is the first time we’ll have had such a broad international discussion in one place on the future of AI,” said Linda Griffin, vice president of public policy at Mozilla. “I see it as a norm-setting moment.”

Nick Reiners, senior geotechnology analyst at Eurasia Group, noted an opportunity to shape AI governance in a new direction by “moving away from this concentration of power amongst a handful of private actors and building this public interest AI instead.”

However, it remains unclear if the U.S. will support such initiatives.

French organizers also hope the summit will lead to major investment announcements in Europe.

France is to announce AI private investments worth a total of $113 billion over the coming years, Macron said, presenting it as “the equivalent” of Trump’s Stargate AI data centers project.

Indian PM co-hosting the summit

India’s Prime Minister Narendra Modi is co-hosting the summit with Macron, in an effort to involve more global actors in AI development and prevent the sector from becoming a U.S.-China battle.

India’s foreign secretary, Vikram Misri, stressed the need for equitable access to AI to avoid “perpetuating a digital divide that is already existing across the world.”

Macron will also travel Wednesday with Modi to the southern city port of Marseille to inaugurate a new Indian consulate and visit the ITER nuclear research site.

France has become a key defense partner for India, with talks underway on purchasing 26 Rafale fighter jets and three Scorpene submarines. Officials in New Delhi said discussions are in final phase and the deal could be inked in a few weeks.
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U.S. President Donald Trump says he wants to make the United States the cryptocurrency capital of the world. He is putting his plan into place in the early weeks of his second presidential term. VOA’s Michelle Quinn has the story.
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