tech

2/10/25

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.

More Tech

tech

12h

OpenAI and Microsoft reach agreement that moves OpenAI closer to for-profit status

In a joint statement, OpenAI and Microsoft announced a “non-binding memorandum of understanding” for their renegotiated $13 billion partnership, which was a source of recent tension between the two companies.

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling non-profit arm would hold an equity stake in the PBC valued at $100 billion, which would “making it one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

A joint statement from OpenAI and Microsoft

A joint statement from OpenAI and Microsoft

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling non-profit arm would hold an equity stake in the PBC valued at $100 billion, which would “making it one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

tech

16h

BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, it’s not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we don’t expect impact on Uber/Lyft financial performance in ’25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

APPLE INTELLIGENCE

Apple AI was MIA at iPhone event

A year and a half into a bungled rollout of AI into Apple’s products, Apple Intelligence was barely mentioned at the “Awe Dropping” event.

Jon Keegan9/10/25

tech

9/10/25

Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Exclusive | Oracle, OpenAI Sign Massive $300 Billion Cloud Computing Deal

Exclusive | Oracle, OpenAI Sign Massive $300 Billion Cloud Computing Deal

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Large companies have started to drop AI from their businesses

Census data shows drop in large companies using AI

AI appears to be everywhere, but that doesn’t mean big companies have fully embraced the use of the technology in their day-to-day business.

Claire Yubin Oh, Jon Keegan9/10/25

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