A consortium led by Elon Musk on Monday offered $97.4 billion to acquire the nonprofit controlling OpenAI, escalating tensions with CEO Sam Altman over the company’s future.
Altman promptly dismissed the bid, posting on X: “no thank you but we will buy twitter for $9.74 billion if you want.”
Musk co-founded OpenAI with Altman in 2015 as a nonprofit but left before it gained prominence. He later founded rival AI startup xAI in 2023, challenging OpenAI’s dominance in generative AI technology.
Musk, CEO of Tesla and owner of tech company X, has become a close ally of President Donald Trump. He played a key role in Trump’s re-election campaign, spending over $250 million, and now heads the Department of Government Efficiency, a White House initiative aimed at reducing federal bureaucracy.
Tensions between Musk and OpenAI grew after Trump announced a $500 billion OpenAI-led project at the White House, which Musk criticized. OpenAI argues that transitioning into a for-profit entity is essential to secure funding for advanced AI development.
Musk sued Altman and OpenAI’s board last August, claiming they abandoned the nonprofit mission by prioritizing profit. In November, he sought a U.S. court injunction to block OpenAI’s structural shift, stating, “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.”
OpenAI’s board dismissed Musk’s latest bid, with Altman reassuring employees that the company has “no interest in Musk’s supposed bid,” according to The Information. The Musk-led consortium includes xAI, Baron Capital Group, Emanuel Capital, and other investors.
OpenAI was valued at $157 billion in its last funding round, with SoftBank in talks to lead a $40 billion investment that could push its valuation to $300 billion.
