tech

Jon Keegan2/10/25

Elon Musk-led investor group makes $97.4 billion offer to buy OpenAI’s nonprofit arm

A group of investors led by Tesla CEO Elon Musk is making an offer to acquire the nonprofit piece of OpenAI for $97.4 billion, according to a report from The Wall Street Journal. Musk’s attorney was reported to have delivered the offer to OpenAI’s board of directors on Monday.

In a statement provided to the Journal, Musk said: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”

OpenAI has a complicated corporate structure that is currently playing out in the courts. It’s controlled by a nonprofit entity, which Musk and his group are seeking to buy. OpenAI CEO Sam Altman is seeking to change the nonprofit into a for-profit, which Musk has loudly opposed on social media and in the California courts. That process would involve spinning out the nonprofit piece and giving it an equity stake in the for-profit entity.

The Journal lists several investors in the group, including Musk’s xAI, Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, Palantir cofounder Joe Lansdale’s 8VC, and Ari Emanuel.

Exclusive | Elon Musk-Led Group Makes $97.4 Billion Bid for Control of OpenAI

Exclusive | Elon Musk-Led Group Makes $97.4 Billion Bid for Control of OpenAI

In a statement provided to the Journal, Musk said: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”

OpenAI has a complicated corporate structure that is currently playing out in the courts. It’s controlled by a nonprofit entity, which Musk and his group are seeking to buy. OpenAI CEO Sam Altman is seeking to change the nonprofit into a for-profit, which Musk has loudly opposed on social media and in the California courts. That process would involve spinning out the nonprofit piece and giving it an equity stake in the for-profit entity.

The Journal lists several investors in the group, including Musk’s xAI, Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, Palantir cofounder Joe Lansdale’s 8VC, and Ari Emanuel.

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Bloomberg says SpaceX is actually considering a merger with Tesla or xAI

Bloomberg is reporting that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to signifigant abstentions.

This story is developing.

Elon Musk’s SpaceX Is Said to Consider Merger With Tesla or xAI

Elon Musk’s SpaceX Is Said to Consider Merger With Tesla or xAI

Apple posts record quarterly revenue and iPhone sales

But all eyes will be on margins and AI.

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WSJ: Amazon considering $50 billion investment in OpenAI

What a difference half a day makes. Earlier today, The Information reported that Amazon was considering investing roughly $10 billion to $20 billion in OpenAI as part of a $60 billion fundraising round alongside Nvidia and Microsoft. Now The Wall Street Journal is reporting the e-commerce giant could invest up to $50 billion in the ChatGPT maker as part of a larger, $100 billion funding round. The Financial Times also earlier reported today a $100 billion funding round but with smaller amounts from Nvidia, Microsoft, and Amazon.

Exclusive | Amazon in Talks to Invest Up to $50 Billion in OpenAI

Exclusive | Amazon in Talks to Invest Up to $50 Billion in OpenAI

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Elon Musk’s SpaceX reportedly in talks to merge with xAI

Tesla CEO Elon Musk is reportedly exploring a merger between SpaceX and his artificial intelligence startup, xAI, a move that would bundle rockets, satellites, the social media site X, and AI under one company ahead of SpaceX’s long-anticipated IPO.

According to Reuters reporting, the deal would swap xAI shares for SpaceX stock, potentially valuing the combined operation north of $1 trillion.

Reuters reports:

“Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

Exclusive: Musk's SpaceX in merger talks with xAI ahead of planned IPO, source says

Exclusive: Musk's SpaceX in merger talks with xAI ahead of planned IPO, source says

Reuters reports:

“Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

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