Elon Musk keeps juggling ventures, a coalition of investors spearheaded by the billionaire unveiled plans on Monday for what seems to be a hostile bid to acquire OpenAI.
The group proposed a staggering $97.4 billion to purchase all of OpenAI’s assets, stating in a press release that it is “prepared to consider matching or exceeding higher bids.”
The investor consortium features Baron Capital Group Inc., Valor Management LLC, Atreides Management, LP, Vy Fund III L.P., Emmanuel Capital Management LLC, and Eight Partners VC LLC.
While Emmanuel Capital maintains a lower public profile, the remaining entities are closely tied to Musk’s ventures.
Baron Capital Group, led by Ron Baron and his son Michael, oversees mutual funds with significant holdings in Tesla and SpaceX.
Atreides Management, linked to Boston-based hedge fund Atreides, is helmed by Gavin Baker, a former Fidelity investor who backed SpaceX early in his career. Baker has publicly endorsed Musk’s Tesla compensation package, and the firm holds stakes in Tesla.
Valor Management’s founder, Antonio Gracias, is a longtime Musk ally, having invested in SpaceX, Tesla (where he served on the board), and SolarCity prior to its Tesla acquisition.
Vy Capital, founded by Alexander Tamas, holds shares in SpaceX and has financed Musk-led projects such as The Boring Company and Neuralink.
Eight Partners VC, identified in filings as Joe Lonsdale’s 8VC, aligns closely with Musk’s orbit. Lonsdale, a vocal supporter, recently praised Musk’s ventures on CNBC a clip Musk reshared on X, calling himself “a huge fan” of initiatives like Dogecoin.
OpenAI CEO Sam Altman swiftly rebuffed the move. Responding on X, he quipped, “no thank you but we will buy twitter for $9.74 billion if you want.”
Speculation abounds over the legitimacy of the offer. Online analysts suggest the bid could be equal parts serious proposal and strategic trolling. Some speculate it’s a maneuver by Musk to inflate the cost Altman’s team might face if they seek to acquire OpenAI’s assets to transition the company away from its nonprofit roots.
Musk, a co-founder of OpenAI’s original nonprofit structure, has openly opposed Altman’s efforts to restructure the organization.
