Elon Musk Leads $97.4 Billion Bid to Control OpenAI

In a move that has sent shockwaves through the tech industry, a consortium led by Elon Musk has submitted an unsolicited bid of $97.4 billion to acquire the nonprofit organization that controls OpenAI.

This bold offer intensifies the ongoing rivalry between Musk and OpenAI’s CEO, Sam Altman, over the future direction of the artificial intelligence pioneer.

The Genesis of OpenAI

Founded in 2015 by Elon Musk and Sam Altman, OpenAI was established as a nonprofit research organization with the mission to develop artificial intelligence that benefits all of humanity.

The founders envisioned an open-source platform that prioritized safety and ethical considerations in AI development. However, as the organization evolved, strategic differences emerged between Musk and Altman, leading to Musk’s departure from the company.

The Diverging Paths

After his exit, Musk founded xAI in 2023, aiming to create an AI company aligned with his vision of open-source and safety-focused development.

Meanwhile, under Altman’s leadership, OpenAI transitioned towards a for-profit model, attracting significant investments from tech giants like Microsoft. This shift was justified by the need for substantial capital to develop advanced AI models, but it also sparked criticism from Musk and others who believed it deviated from OpenAI’s original mission.

The $97.4 Billion Bid

On February 10, 2025, Musk’s consortium, which includes his AI startup xAI, Baron Capital Group, Valor Management, Altreides Management, Vy Fund III, Emanuel Capital Management, and Eight Partners, submitted a $97.4 billion bid to acquire the nonprofit controlling OpenAI. Musk stated, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”

Altman’s Response

Sam Altman promptly dismissed the offer, taking to X (formerly Twitter) to quip, “No thank you but we will buy Twitter for $9.74 billion if you want.” This retort not only rejected Musk’s bid but also alluded to Musk’s acquisition of Twitter in 2022 for $44 billion, highlighting the ongoing tension between the two tech titans.

Legal Battles and Strategic Disputes

The bid is the latest development in a series of legal and strategic disputes between Musk and Altman. In August 2024, Musk sued Altman and others, alleging that they violated contractual provisions by prioritizing profit over the public good in advancing AI. He argued that OpenAI had strayed from its original nonprofit mission.

In November 2024, Musk sought a preliminary injunction to prevent OpenAI from converting to a … . These legal actions underscore the deepening rift over the organization’s direction and governance.

Implications of the Bid

Musk’s offer raises significant questions about OpenAI’s valuation and future. The nonprofit was valued at $157 billion … and reports suggest that SoftBank Group is in talks to lead a … , potentially valuing OpenAI at $300 billion.

Musk’s bid not only challenges these valuations but also complicates OpenAI’s efforts to transition into a for-profit entity. Legal experts note that the bid could impact the nonprofit’s responsibilities to its beneficiaries and the valuation of its economic interests.

The Road Ahead

As the saga unfolds, the tech industry watches closely. Musk’s consortium has expressed readiness to match or exceed any higher bids, emphasizing the importance of fair compensation for the nonprofit’s assets if OpenAI’s leadership intends to become a fully for-profit corporation.

The outcome of this bid could have far-reaching implications for the future of AI development, the balance between profit and public good, and the dynamics between two of the industry’s most influential figures.

In conclusion, Elon Musk’s $97.4 billion bid to take control of OpenAI marks a pivotal moment in the ongoing debate over the direction of artificial intelligence development.

As Musk and Altman continue their high-stakes rivalry, the tech world awaits the next chapter in this unfolding drama.