Elon Musk Leads $97.4B Bid to Take Over OpenAI

SAN FRANCISCO – A consortium led by Elon Musk has made a $97.4 billion offer to acquire the nonprofit controlling OpenAI, intensifying the billionaire’s battle against the AI company’s transition to a for-profit model.

The move reignites tensions between Musk and OpenAI CEO Sam Altman, who swiftly rejected the offer, posting on X (formerly Twitter):

“No thank you, but we will buy Twitter for $9.74 billion if you want.”

Musk vs. OpenAI’s Profit Shift

Musk co-founded OpenAI in 2015 as a nonprofit but left before its ChatGPT-powered rise. In 2023, he launched his own AI venture, xAI, as a competitor.

He has since sued Altman and OpenAI, accusing them of abandoning their original nonprofit mission to develop AI for the public good.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement.

OpenAI, which Microsoft backs, is currently valued at $157 billion, with potential new investments pushing it toward $300 billion.

Funding and Antitrust Challenges

Musk’s bid, however, raises questions about financing and regulatory hurdles. His Tesla stock is valued at $165 billion, but his leverage is limited after his $44 billion Twitter takeover.

Experts note that Musk’s offer could complicate OpenAI’s fundraising efforts, making it harder for the company to secure new investments without considering the bid.

With OpenAI standing firm on its for-profit transition, Musk’s takeover attempt is poised to further disrupt the AI landscape—and the future of ChatGPT itself.