Elon Musk Leads $97.4 Billion Bid to Buy OpenAI
In a bold move that could redefine the artificial intelligence landscape, Elon Musk is leading a group of investors in a $97.4 billion bid to acquire OpenAI, the parent company of ChatGPT. The offer, first reported by The Wall Street Journal, comes amid Musk’s long-standing feud with OpenAI CEO Sam Altman and legal disputes over the company’s shift toward for-profit operations.
Musk vs. OpenAI: A History of Disputes
Musk, who co-founded OpenAI in 2015, has frequently criticized the company for straying from its original mission as a nonprofit focused on AI safety. He has filed multiple lawsuits against OpenAI and Altman, arguing that the company misrepresented itself as a philanthropic organization while secretly pursuing profits.
OpenAI operates under a nonprofit-controlled structure, but its for-profit arm, OpenAI LP, has skyrocketed in value—reaching nearly $100 billion in just a few years. Altman is widely credited as the driving force behind this transformation, leveraging major partnerships with Microsoft and Thrive Capital.
Musk’s Legal Challenges Against OpenAI
Musk’s legal battle with OpenAI has taken several twists. He first sued the company in June 2024, claiming it had abandoned its original open-source principles. However, the lawsuit was dropped after OpenAI released emails from Musk’s early involvement, showing that he had previously acknowledged the need for profit-driven growth.
In August 2024, Musk filed a second lawsuit, accusing OpenAI of:
- Prioritizing profits over AI safety
- Rushing to develop artificial general intelligence (AGI)
- Engaging in racketeering
In response, OpenAI has suggested that Musk is simply bitter about no longer being involved in the company. In 2018, Musk reportedly tried—and failed—to convince his co-founders to let Tesla acquire OpenAI, leading to his departure.
Investor Statement: OpenAI Must Return to Its Roots
Marc Toberoff, an attorney representing Musk and his investors, issued a strong statement about the bid:
“If Sam Altman and the present OpenAI board are intent on becoming a fully for-profit corporation, the charity must be fairly compensated for what its leadership is taking away—control over the most transformative technology of our time. It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
Altman’s Response: A Sarcastic Rebuttal
Altman quickly dismissed the offer with a sarcastic post on X (formerly Twitter):
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
This exchange highlights the ongoing power struggle between the two tech moguls, who have vastly different visions for the future of AI.
The OpenAI Power Struggle
OpenAI has faced internal turmoil in recent years. In late 2023, Altman was briefly fired by the board before being reinstated, signaling deep concerns about the company’s direction. Former board members have warned that OpenAI is moving too fast without proper safety measures.
Meanwhile, investors—including Microsoft—are eager to see OpenAI expand its business potential. The pressure to innovate and commercialize AI products has led OpenAI to develop and release cutting-edge tools at an unprecedented speed, sometimes at the risk of ethical and security concerns.
What’s Next?
If successful, Musk’s $97.4 billion bid could shift OpenAI’s leadership and direction dramatically. However, given the bitter history between Musk and Altman, as well as the deep-pocketed investors backing OpenAI, it remains to be seen whether this offer will gain traction—or if it’s simply another chapter in Musk’s ongoing battle with the AI giant.
