Musk tries to buy OpenAI

Good morning! We have some AI drama for you to feast on today. Get your drink ready, because it is a bit spicy. 🌶️

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MUSK AND ALTMAN FIGHT 🥊

Who doesn’t love some drama? 😆

What’s going on? An Elon Musk-led investor group recently offered $97.4 billion to buy OpenAI’s non-profit wing, but CEO Sam Altman swiftly rejected the proposal and lashed out against Musk.

Want the background? Altman and Musk co-founded OpenAI in 2015. Musk left the company in 2018, citing safety concerns surrounding the company’s focus on profits over innovation. Since then, Musk has hit OpenAI with multiple lawsuits and critiques and launched a rival company, x.AI.

What’s the drama? Altman responded to Musk’s recent offer to buy the non-profit wing of OpenAI by posting on X, “no thank you but we will buy twitter for 9.74 billion if you want.” When asked about it in an interview, Altman added, “Elon tries all sorts of things for a long time. This is the latest—you know, this week’s episode … I think he’s probably just trying to slow us down, but we’ll just keep working. I don't think he’s, like, a happy person. I do feel for him.” To these comments, Musk replied, “Scam Altman has crazy eyes.”

JD VANCE TALKS “HANDS-OFF” APPROACH TO AI 🖖

Do you want government in your AI? 🤷‍♂️

What’s up? Vice President JD Vance warned global leaders at the Paris AI Action Summit that excessive regulation could stifle innovation in the fast-growing AI industry.

Want the details? At the summit, Vance described AI as the next industrial revolution, warning that heavy-handed policies could deter innovation. This hands-off approach aims to allow for free speech in AI development, where the people control how these AI systems work—not the government. Vance underscored that the Trump administration will “ensure that AI systems developed in America are free from ideological bias” and pledged the U.S. would “never restrict our citizens’ right to free speech.” His speech underscored America’s absence from an international pledge signed by over 60 nations—including China—to promote “responsible” AI use.

What’s the significance? The United States, under President Donald Trump, favors minimal regulation to fuel AI innovation. This approach is different from that of Europe and China. Europe has been enforcing comprehensive AI laws, aiming to protect public safety and privacy. Meanwhile, China is rapidly expanding AI development through state-backed tech giants. The global race for AI dominance continues amidst these differing strategies.

WILL CHATGPT DROP 10X IN PRICE? 💰

Q: Why are balloons so expensive?

A: Inflation. 🎈

What’s new? In a recent blog post, OpenAI CEO Sam Altman predicted that AI costs will drop tenfold each year, leading to a dramatic increase in its usage.

What did he say? Altman believes AI costs will drop 10x each year due to advances in scaling laws and infrastructure improvements. He explains that AI models become more efficient as they grow larger and more powerful, with predictable gains tied directly to the amount of resources invested. As companies continue pouring money into AI development, these scaling laws drive rapid progress, allowing AI to deliver more intelligence for less cost. He cited how the price per token for OpenAI’s GPT-4 dropped 150 times between early 2023 and mid-2024. Altman likens this to Moore’s Law in computing but on a much faster, “super-exponential” trajectory.

“WATCH THIS” WEDNESDAY 👀

Bloomberg TV interviewed OpenAI CEO Sam Altman about Elon Musk’s offer to buy OpenAI. Check out what he said in the full interview:

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