- Technology Insights Daily
- Posts
- Elon Musk Offers $97.4 Billion to Acquire OpenAI
Elon Musk Offers $97.4 Billion to Acquire OpenAI
Technology Insights Daily
February 17, 2025
In partnership with
Here’s Why Over 4 Million Professionals Read Morning Brew
Business news explained in plain English
Straight facts, zero fluff, & plenty of puns
100% free
Welcome to Technology Insights Daily! We work hard to bring you the latest tech updates, and your support keeps us going. A great way to help is by checking out our amazing sponsors—they make this newsletter possible! Click on the links above to explore exclusive offers and innovations from our partners. Let’s get started!
lon Musk, leading a consortium of investors, has made a $97.4 billion bid to acquire the nonprofit entity that controls OpenAI. This move intensifies the ongoing tension between Musk and OpenAI's CEO, Sam Altman, over the organization's direction.
Key Details:
Consortium Composition: The bid is backed by Musk's AI company, xAI, along with investors such as Baron Capital Group and Emanuel Capital.
Musk's Intentions: Musk aims to steer OpenAI back to its original mission of developing AI safely and transparently, expressing concerns over its shift towards a for-profit model.
Altman's Response: Sam Altman promptly dismissed the offer, humorously suggesting a counter-offer to purchase Musk's social media platform, X (formerly Twitter), for $9.74 billion.
Musk co-founded OpenAI with Altman in 2015 as a nonprofit organization but departed in 2018 due to strategic disagreements. Since then, OpenAI has been transitioning towards a for-profit structure to attract substantial investments for AI development. Musk has been critical of this shift, expressing concerns that OpenAI is deviating from its original mission and becoming too closely aligned with major investors like Microsoft.
OpenAI is advancing its development of an in-house artificial intelligence (AI) chip, aiming to finalize the design within the next few months. The company plans to send the design to Taiwan Semiconductor Manufacturing Company (TSMC) for fabrication using TSMC's advanced 3-nanometer (3nm) process technology. Mass production is targeted for 2026.
Design Finalization: OpenAI intends to complete the design of its custom AI chip soon and proceed to the "tape-out" phase, which involves preparing the design for manufacturing.
Manufacturing Partner: The chip will be fabricated by TSMC using their 3nm process, known for its efficiency and performance advantages.
Development Team: Led by former Google engineer Richard Ho, OpenAI's hardware team has expanded to 40 members, collaborating with Broadcom in the chip's development.
Strategic Implications:
By developing its own AI chip, OpenAI aims to reduce its dependence on external suppliers like NVIDIA, which currently dominates the AI chip market. This move is expected to enhance OpenAI's negotiating leverage with chip suppliers and better control over its hardware infrastructure.
Initially, the custom chip will be deployed on a limited scale, primarily for running AI models. Over time, OpenAI plans to develop more advanced processors to support its expanding AI initiatives.
This development aligns with a broader industry trend, as other tech giants like Microsoft and Meta are also investing in custom AI chips to optimize performance and manage costs.
Recent reports indicate that Apple's M3 MacBook Air inventory is decreasing, suggesting that the company is preparing to launch the M4 MacBook Air in the near future.
Key Indicators:
System Identifiers: In December 2024, macOS Sequoia 15.2 included references to unreleased "Mac16,12" and "Mac16,13" models, identified as the "MacBook Air (13-inch, M4, 2025)" and "MacBook Air (15-inch, M4, 2025)."
Chip Details: Both the 13-inch and 15-inch MacBook Air models are expected to feature Apple's "T8132" chip, corresponding to the M4 System on Chip (SoC).
Launch Timeline: Industry analysts anticipate that the M4 MacBook Air could be announced in the coming weeks, potentially making it Apple's first product release of 2025.
The upcoming M4 MacBook Air is expected to maintain the sleek design of its predecessors while offering enhanced performance and efficiency with the new M4 chip.
Google Maps has officially renamed the "Gulf of Mexico" to the "Gulf of America" for users in the United States, following an executive order from President Donald Trump. This change was implemented after the U.S. Board on Geographic Names updated its database to reflect the new designation.
Implementation Details:
United States: Users within the U.S. will see the body of water labeled as the "Gulf of America" on Google Maps.
Mexico: In Mexico, the traditional name "Gulf of Mexico" will continue to be displayed.
Other Regions: Users outside of the U.S. and Mexico will see both names, with "Gulf of Mexico" listed first, followed by "Gulf of America" in parentheses.
Background:
On January 20, 2025, President Trump signed Executive Order 14172, titled "Restoring Names That Honor American Greatness," which directed the renaming of the Gulf of Mexico to the Gulf of America. The order also included reverting the name of Denali, North America's highest peak, back to Mount McKinley.
As of early 2025, Liang Wenfeng, founder and CEO of DeepSeek, has an estimated net worth exceeding $1 billion. He holds approximately 84% of DeepSeek's shares.
In contrast, Jensen Huang, co-founder and CEO of NVIDIA, has a net worth of around $100 billion.
While DeepSeek's rapid ascent in the AI industry has significantly increased Liang's wealth, it remains substantially below Huang's current net worth. However, some industry analysts speculate that if DeepSeek's valuation reaches $150 billion, Liang's net worth could surpass $126 billion, potentially exceeding Huang's.
Therefore, while Liang Wenfeng's net worth has not yet surpassed Jensen Huang's, future developments in DeepSeek's valuation could alter this standing.
That’s a wrap for today! Stay informed and ahead—catch us tomorrow for more insights. Share & subscribe at 🔗 www.technologyinsightsdaily.com. 🚀