The Article Tells The Story of:
- Elon Musk led a $97.4 billion bid to acquire OpenAI, intensifying his feud with CEO Sam Altman.
- Altman rejected the offer and mocked Musk by offering to buy Twitter for $9.74 billion.
- Musk claims OpenAI should return to open-source principles and criticized its current direction.
- The bid could complicate Altman’s efforts to privatize OpenAI, raising legal and financial challenges.
Elon Musk Attempts $97.4 Billion Takeover of OpenAI, Faces Immediate Rejection
Elon Musk, the billionaire entrepreneur behind Tesla and SpaceX, has led a consortium of investors in an unsolicited $97.4 billion bid to acquire OpenAI. This surprising move marks the latest chapter in Musk’s ongoing feud with OpenAI CEO Sam Altman. The Wall Street Journal reported that the bid aims to purchase all of OpenAI’s assets, including the widely-used AI chatbot, ChatGPT. The group stated they are ready to match or exceed higher offers if necessary.
Altman responded swiftly to the offer. In a post on X (formerly Twitter), he declined Musk’s bid and humorously suggested he would “buy Twitter for $9.74 billion” instead. Musk quickly replied with a terse “Swindler,” highlighting the tension between the two tech leaders.
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Musk’s Vision for OpenAI
Musk and his team argue that acquiring OpenAI would steer the company back to its original mission—developing open-source AI to benefit humanity. “It’s time for OpenAI to return to the open source, safety-focused force for good it once was,” Musk stated through his lawyer, Marc Toberoff. Musk pointed to his own Grok AI model under x.AI as an example of how AI development should prioritize openness and respect for content creators.
The consortium behind the bid includes several prominent firms such as Baron Capital Group Inc., Valor Management LLC, Atreides Management LP, Vy Fund III L.P., Emmanuel Capital Management LLC, and Eight Partners VC LLC. Musk’s own x.AI also supports the offer and could merge with OpenAI if the acquisition proceeds.
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Impact on OpenAI’s Future
The bid could complicate Altman’s plans to take OpenAI private. The for-profit branch of OpenAI must purchase its controlling nonprofit’s assets at a fair price. Musk’s high bid raises the valuation of these assets, potentially making it more expensive for OpenAI to complete the privatization process.
Last month, Toberoff sent a letter to California’s attorneys general, requesting that they open up bidding for OpenAI’s assets to ensure transparency in determining their value. Musk and his supporters argue that without competitive bidding, OpenAI might undervalue its nonprofit assets during the spin-out process.
Musk’s Legal Battles with OpenAI
This bid is the latest in a series of legal confrontations between Musk and OpenAI. Musk, who co-founded OpenAI with Altman in 2015, left the organization three years later, citing a conflict of interest with Tesla’s AI developments. In 2024, Musk sued OpenAI and Altman, claiming they breached original agreements by prioritizing profit over the goal of developing AI for humanity’s benefit. Musk later dropped the lawsuit without providing a reason.
In November, Musk filed another legal challenge against OpenAI, its co-founders, and major investor Microsoft. The injunction sought to block OpenAI’s transition into a for-profit entity. This ongoing conflict reflects Musk’s belief that OpenAI has strayed from its founding principles.
Musk Criticizes Stargate Project and TikTok Rumors
Musk has also been vocal about other tech industry developments. He criticized former President Donald Trump’s Stargate project, which involves several tech giants, including OpenAI, Oracle, MGX, and SoftBank, investing $500 billion to build data centers in the U.S. over four years. When OpenAI announced a $100 billion investment in Stargate, Musk scoffed, saying, “They don’t have the money.”
Additionally, recent reports suggested Musk was interested in purchasing TikTok’s U.S. assets. However, Musk denied these claims, stating he had no interest in acquiring the popular social media platform.
Conclusion
Elon Musk’s $97.4 billion bid to acquire OpenAI has added fuel to his ongoing rivalry with Sam Altman. While Musk claims the acquisition would restore OpenAI’s original mission, Altman’s rejection and subsequent mockery reflect the deep divide between the two leaders. The bid also raises legal and financial challenges for OpenAI’s privatization efforts, ensuring this conflict will continue to unfold in the tech industry spotlight.
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