The rivalry between Elon Musk and OpenAI just reached a new peak. Musk has officially launched a $97.4 billion bid to acquire OpenAI’s nonprofit arm, reigniting tensions between the company’s co-founders and adding a new layer of complexity to the AI industry’s biggest power struggle.
The Bold Offer
According to The Wall Street Journal, Musk’s bid—announced Monday morning—is backed by his AI company xAI and major investors, including Valor Equity Partners, Hollywood power player Ari Emanuel, and Palantir co-founder Joe Lonsdale’s venture firm 8VC.
Musk’s move isn’t just about money—it’s about ideology. He has long accused OpenAI, which he co-founded in 2015 but left in 2019, of betraying its original mission of open-source, safety-driven AI development. Musk is currently suing the company over these claims, making his takeover bid an aggressive escalation.
Musk stated through his lawyer, Marc Toberoff:
It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.
Altman’s Swift Rejection
Sam Altman, OpenAI’s CEO, wasted no time in responding. His reaction? A firm “no.”
In a sarcastic post on X (formerly Twitter), Altman shot back:
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
In a later interview with Bloomberg, Altman dismissed Musk’s bid as a distraction tactic rather than a genuine acquisition attempt. “I think he is probably just trying to slow us down. He obviously is a competitor.” He also added, “I wish he would just compete by building a better product.”
OpenAI’s board will ultimately decide the fate of Musk’s offer, but current signals indicate that the company isn’t looking to sell. Board director Larry Summers stated that they have received no formal communication from Musk’s team.
The Bigger Picture
Musk’s bid lands at a critical time for OpenAI, which is in the middle of multiple high-stakes financial maneuvers:
- OpenAI is working on raising $40 billion, aiming for a valuation of $340 billion.
- The company is spearheading a $500 billion AI infrastructure initiative.
- Microsoft remains OpenAI’s biggest investor, complicating any potential takeover.
Additionally, OpenAI’s nonprofit arm, which Musk is targeting, controls the for-profit company. Any acquisition attempt would require navigating the organization’s complex governance structure—something Musk’s past legal battles with Twitter suggest he is no stranger to.
For now, OpenAI remains firm: “OpenAI is not for sale.”
But Musk, never one to back down from a fight, has promised to match or exceed any counteroffers, potentially keeping the drama alive for months.
HODL Team
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