Elon Musk Leads $97.4 Billion Bid to Acquire OpenAI
Elon Musk is spearheading an investor group that has made a staggering $97.4 billion offer to acquire OpenAI, the company behind ChatGPT. If successful, the deal could dramatically alter the landscape of artificial intelligence and reignite Musk’s influence over the organization he co-founded in 2015.
The move, first reported by The Wall Street Journal, follows years of tension between Musk and OpenAI’s leadership, particularly CEO Sam Altman. Musk has been an outspoken critic of OpenAI’s transition into a for-profit entity, arguing that the company has strayed from its original mission of developing AI for the benefit of humanity.
Musk vs. OpenAI: A Long-Standing Feud
Musk, who left OpenAI in 2018 after failing to gain control of the company, has since taken legal action against the organization, accusing it of prioritizing profit over safety and transparency. His latest lawsuit, filed in August 2024, alleges that OpenAI is rushing to develop artificial general intelligence (AGI) purely for financial gain.
Despite Musk’s criticisms, OpenAI has attracted major investors, including Microsoft and venture capital firm Thrive Capital, both of whom have pushed for commercial expansion. Under Altman’s leadership, the company has grown from a nonprofit research lab to a dominant AI powerhouse, with a valuation approaching $100 billion.
Musk’s legal team argues that OpenAI’s nonprofit arm should be compensated if the company continues its for-profit trajectory. “If Sam Altman and the present OpenAI, Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time,” said Marc Toberoff, an attorney representing Musk and the investor group.
Altman Responds with a Jab
Altman dismissed the takeover bid with a sharp response on X (formerly Twitter), stating, “no thank you but we will buy Twitter for $9.74 billion if you want.”
The comment references Musk’s turbulent $44 billion acquisition of Twitter in 2022, which resulted in major layoffs and a controversial rebranding of the platform to X.
A Battle for AI’s Future
Musk’s bid for OpenAI could grant him significant control over one of the world’s leading AI companies, potentially merging its operations with his own AI venture, xAI. The move could also rekindle debates over AI ethics, commercialization, and the risks of rapid technological development.
The proposal comes amid lingering concerns over OpenAI’s governance. In late 2023, the company’s board abruptly fired Altman before reinstating him days later, following internal disagreements over AI safety and the company’s direction.
While Musk’s takeover attempt underscores his deep interest in shaping AI’s future, it remains uncertain whether OpenAI’s investors and board members will entertain the offer – or if it is simply the latest chapter in the ongoing rivalry between two of the most influential figures in the AI industry.
