A group of investors led by Elon Musk is offering about $97.4 billion to buy OpenAI, escalating a legal dispute with the artificial intelligence company that Musk helped found.
Musk and his own AI startup, xAI, and a consortium of investment firms want to take control of the ChatGPT maker and revert it to its original charitable mission as a nonprofit research lab, according to Musk’s attorney Marc Toberoff.
OpenAI CEO Sam Altman quickly rejected the deal on Musk’s social platform X, saying, “no thank you but we will buy Twitter for $9.74 billion if you want.”
Musk bought Twitter, now called X, for $44 billion in 2022.
Musk and Altman, who together helped start OpenAI in 2015 and later competed over who should lead it, have been in a long-running feud over the startup’s direction since Musk resigned from its board in 2018.
Musk, an early OpenAI investor and board member, sued the company last year, first in a California state court and later in federal court, alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good. Musk had invested about $45 million in the startup from its founding until 2018, Toberoff has said.
Musk and OpenAI lawyers faced off in a California federal court last week as a judge weighed Musk’s request for a court order that would block the ChatGPT maker from converting itself to a for-profit company.
US District Judge Yvonne Gonzalez Rogers hasn’t yet ruled on Musk’s request but in the courtroom said it was a “stretch” for Musk to claim he will be irreparably harmed if she doesn’t intervene to stop OpenAI from moving forward with its planned for-profit transition.
But the judge also raised concerns about OpenAI and its relationship with business partner Microsoft and said she wouldn’t stop the case from moving to trial as soon as next year so a jury can decide.
“It is plausible that what Mr. Musk is saying is true. We’ll find out. He’ll sit on the stand,” she said.
Along with Musk and xAI, others backing the bid announced Monday include Baron Capital Group, Valor Management, Atreides Management, Vy Fund, Emanuel Capital Management and Eight Partners VC.
Toberoff said in a statement that if Altman and OpenAI’s current board “are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time.”
Musk’s attorney also shared a letter he sent in early January to the attorneys general of California and Delaware.
“As both your offices must ensure any such transactional process relating to OpenAI’s charitable assets provides at least fair market value to protect the public’s beneficial interest, we assume you will provide a process for competitive bidding to actually determine that fair market value,” Toberoff wrote, asking for more information on the terms and timing of that bidding process.
Elon Musk-led group proposes buying OpenAI for $97.4bn. OpenAI CEO says ‘no thank you’
https://arab.news/2qvhd
Elon Musk-led group proposes buying OpenAI for $97.4bn. OpenAI CEO says ‘no thank you’
- Musk had invested about $45 million in the startup from its founding until 2018
Trump calls for one year cap on credit card interest rates at 10 percent
- Trump says Americans have been ‘ripped off’ by credit card companies
- Lawmakers from both parties have raised concerns about rates
WASHINGTON: US President Donald Trump said on Friday he was calling for a one-year cap on credit card interest rates at 10 percent starting on January 20 but he did not provide details on how his plan will come to fruition or how he planned to make companies comply.
Trump also made the pledge during the campaign for the 2024 election that he won but analysts dismissed it at the time saying that such a step required congressional approval.
Lawmakers from both the Democratic and Republican Parties have raised concerns about high rates and have called for those to be addressed. Republicans currently hold a narrow majority in both the Senate and the House of Representatives.
There have been some legislative efforts in Congress to pursue such a proposal but they are yet to become law and in his post Trump did not offer explicit support to any specific bill.
Opposition lawmakers have criticized Trump, a Republican, for not having delivered on his campaign pledge.
“Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10 percent,” Trump wrote on Truth Social, without providing more details.
“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies,” Trump added.
The White House did not immediately respond to a request for comment on details of the call from Trump, but said on social media without elaborating that the president was capping the rates.
Some major US banks and credit card issuers like American Express, Capital One Financial Corp, JPMorgan , Citigroup and Bank of America did not immediately respond to a request for comment.
US Senator Bernie Sanders, a fierce Trump critic, and Senator Josh Hawley, who belongs to Trump’s Republican Party, have previously introduced bipartisan legislation aimed at capping credit card interest rates at 10 percent for five years. This bill explicitly directs credit card companies to limit rates as part of broader consumer relief legislation.
Democratic US Representative Alexandria Ocasio-Cortez and Republican Congresswoman Anna Paulina Luna have also introduced a House of Representatives bill to cap credit card interest rates at 10 percent, reflecting cross-aisle interest in addressing high rates.
Billionaire fund manager Bill Ackman, who endorsed Trump in the last elections, said the US president’s call was a “mistake.”
“This is a mistake,” Ackman wrote on X.
“Without being able to charge rates adequate enough to cover losses and earn an adequate return on equity, credit card lenders will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates higher than and on terms inferior to what they previously paid.”
Last year, the Trump administration moved to scrap a credit card late fee rule from the era of former President Joe Biden.
The Trump administration had asked a federal court to throw out a regulation capping credit card late fees at $8, saying it agreed with business and banking groups that alleged the rule was illegal. A federal judge subsequently threw out the rule.
