Elon Musk's bid of $97.4 billion for OpenAI has implications for Microsoft, as it is OpenAI's biggest investor and key commercial partner. However, the recent loosening of ties between Microsoft and OpenAI could benefit Microsoft, allowing it to focus on its own AI initiatives.
OpenAI is now seeking funding from other sources such as Softbank and Oracle, reducing the significance of Musk's bid for Microsoft. Microsoft retains the right of first refusal for OpenAI's future cloud requirements.
Microsoft is not on the OpenAI nonprofit board and is in a decent position to avoid any distractions. It can focus on its own AI strategy without being entangled in Elon Musk's ongoing lawsuit against OpenAI.
While Musk's bid may be a sideshow, Microsoft should take the opportunity to strengthen its own AI initiatives and reduce dependency on OpenAI's technologies.