Musk now has a competitor in the AI market, a startup called xAI, and is suing OpenAI, accusing it of antitrust violations and to try and keep it from converting into a for-profit corporation.
Meanwhile, OpenAI partnered with SoftBank and Oracle in a project announced by Trump right after his inauguration called Stargate, which calls on the companies to invest billions of dollars in AI infrastructure in the U.S.
Musk's offer is backed by xAI, which the Journal reports could merge with OpenAI if a deal were to occur. Other investors in the bid include Valor Equity Partners, Baron Capital, 8VC and Ari Emanuel's investment fund, the paper reported.