Altman Rejects Musk’s $97B OpenAI Bid

FINANCE
Altman Rejects Musk’s $97B OpenAI Bid

OpenAI CEO Sam Altman rejected a $97.4 billion bid from Elon Musk and a group of investors to acquire the nonprofit controlling ChatGPT’s creator. Musk’s attorney, Marc Toberoff, confirmed the offer, but Altman responded on Musk’s X platform with a dismissive “No thank you, but we will buy Twitter for $9.74 billion if you want.”

The bid was backed by Musk’s AI startup xAI, which could have merged with OpenAI, along with investors like Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and Palantir co-founder Joe Lonsdale.

Musk and Altman have long feuded over OpenAI’s shift from a nonprofit AI research lab into a for-profit enterprise, largely due to Microsoft’s $13 billion investment. Musk has accused OpenAI of monopolizing AI and suppressing competition. Meanwhile, SoftBank is negotiating a $25 billion investment, potentially making it OpenAI’s largest backer, while OpenAI, SoftBank, and Oracle plan a $500 billion cloud venture, Stargate.

ECONOMY
China Responds to U.S. Trade War

Donald Trump announced plans to implement reciprocal tariffs—matching the duties imposed on U.S. goods by other countries—as early as Tuesday, sparking concerns across Asian economies with large trade surpluses with the U.S.

Countries like China, Vietnam, Japan, and India are preparing for potential tariff hikes, as analysts suggest the U.S. may target economies with higher import tariffs. Barclays reported that most Asian nations impose higher duties than the U.S., with India leading at 17% compared to America’s 3.3%.

Vietnam, with a $123.5 billion trade surplus, is seen as particularly vulnerable, as Trump previously called it a “major trade abuser.” Meanwhile, India is signaling tariff reductions and increasing U.S. purchases to maintain favorable relations.

Japan appears better positioned, as its low tariffs and U.S. investments make it one of Trump’s most favored trade partners. Meanwhile, China has retaliated with targeted tariffs, though analysts believe it is leaving room for future negotiations.

ECONOMY
Trump’s Oil Plan Faces Industry Pushback

Donald Trump plans to tap into America’s oil reserves to boost the economy, but the decision to increase drilling rests with private industry, not the White House. Shareholders prioritize profitability and dividends over political influence, making it unlikely that Trump’s policies alone will drive higher production.

Although the U.S. is the world’s top oil producer, experts warn that reserves are finite, and companies are focusing on long-term value rather than short-term output spikes. The economics of oil production are complex, and flooding the market could drive prices down, reducing profitability.

Trump may introduce incentives such as tax breaks, deregulation, and expanded drilling on federal land, but experts remain skeptical that this will significantly alter production strategies. Analysts note that while policy changes may bring forward some future production, they are unlikely to fundamentally reshape the industry’s trajectory. The real question is whether these moves will extend America’s oil dominance or simply delay its eventual decline.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.