Musk Makes $97.4B Bid for OpenAI

TECH
Musk Makes $97.4B Bid for OpenAI

Elon Musk and a group of investors have made a $97.375 billion all-cash bid to acquire OpenAI’s operating assets, according to a letter of intent filed in California federal court on Wednesday. The offer, which expires on May 10, requires OpenAI to grant access to financial records, facilities, and key personnel for due diligence.

This filing provides the first concrete details of Musk’s hostile takeover attempt, which was publicly rejected by OpenAI CEO Sam Altman, though the board has yet to respond. The letter states that Musk’s consortium—including Baron Capital, Valor Management, and xAI—does not require third-party debt financing to close the transaction.

OpenAI’s $97.4 billion valuation is based on historical financials and projections, though the final price is subject to negotiation. OpenAI’s legal team argues that Musk, CEO of xAI, is attempting to undermine the company amid his ongoing lawsuit against Altman and OpenAI.

FINANCE
Ray Dalio Warns of Debt Crisis

Hedge fund billionaire Ray Dalio has issued a stark warning about the U.S. economy, urging the government to slash its budget deficit or risk severe consequences. Speaking at the World Government Summit in Dubai, Dalio compared the situation to a patient with a serious illness, saying the U.S. must reduce its deficit from 7.5% to 3% of GDP to avoid a financial crisis.

As of Feb. 11, U.S. national debt stood at $36.22 trillion, with $28.8 trillion held by the public. Dalio warned that excessive debt weakens economic stability, increases interest payments, and burdens future generations.

He also cautioned against a “debt death spiral,” where borrowing is needed just to pay off existing debt. Dalio called for fiscal discipline and urged leaders to commit to debt reduction or resign. His hedge fund, Bridgewater Associates, manages $171.7 billion and has long advocated for sustainable economic policies.

FINANCE
Coca-Cola Reports Strong Q4 Growth

Coca-Cola posted 6% revenue growth in Q4 2024, reaching $11.5 billion, but new aluminum tariffs from President Trump’s administration could push the company toward increased plastic bottle usage. CEO James Quincey acknowledged that the 25% import tax on steel and aluminum may drive up production costs, leading Coca-Cola to rely more on PET plastic bottles to maintain affordability.

Although Quincey downplayed the tariffs' impact, Coca-Cola’s sustainability efforts are under scrutiny. The company has cut back its recycled materials goal from 50% by 2030 to 35%-40% by 2035, a move that environmental advocates criticize.

Despite challenges, Coca-Cola’s Q4 earnings beat expectations, driven by higher pricing and demand in key markets like the U.S., China, and Brazil. Coke Zero Sugar led growth with a 13% increase, while coffee and sports drinks declined. Looking ahead, Coca-Cola expects 5%-6% organic revenue growth in 2025, with moderate price increases and steady demand.

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