A consortium of investors led by Elon Musk has submitted an unsolicited $97.4 billion bid to acquire OpenAI, escalating the ongoing power struggle between Musk and the AI company he co-founded. The offer aims to halt OpenAI’s transition from a nonprofit to a for-profit entity, a move Musk has long criticized.
Musk, who leads Tesla and xAI, stated that the acquisition would restore OpenAI’s original mission as an “open-source, safety-focused force for good.” However, OpenAI CEO Sam Altman swiftly dismissed the bid in a post on X (formerly Twitter), sarcastically responding, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
The Investors Behind the Bid
The Wall Street Journal first reported the bid, confirming backing from Musk’s AI startup xAI and several major investment firms, including:
•Valor Equity Partners
•Baron Capital
•Atreides Management
•Vy Capital
•Joe Lonsdale’s 8VC
•Ari Emanuel’s investment fund
Marc Toberoff, a lawyer representing the investor group, confirmed the offer but declined further comments. If successful, the deal could see OpenAI merge with xAI, Musk’s own AI venture.
Motives Behind Musk’s Offer
The bid comes amid OpenAI’s aggressive shift toward becoming a multibillion-dollar AI powerhouse, a transition Musk has openly opposed. Legal expert Rob Rosenberg, founder of Telluride Legal Strategies, suggested that Musk’s move is as much about making a statement as it is about acquiring OpenAI.
“I think he’s trying to bring more attention to OpenAI’s transformation and challenge the fairness of the process,” Rosenberg said.
He further argued that OpenAI’s valuation should be subject to fair market competition, rather than insider negotiations, as it was originally established as a nonprofit serving the public interest.
Musk vs. OpenAI: A Long-Standing Feud
Musk and Altman have been at odds for years over OpenAI’s direction. Musk has accused the company of abandoning its original mission and aligning too closely with corporate interests, particularly Microsoft, which has invested $13 billion in OpenAI.
Key developments in their dispute include:
•Musk’s departure from OpenAI over disagreements about its future direction.
•OpenAI’s transition into a for-profit model under Altman.
•Musk’s lawsuit against OpenAI, now spanning 107 pages with 26 legal claims, arguing that OpenAI has created a monopoly with Microsoft to stifle competition.
•OpenAI’s counterclaim that Musk’s criticism stems from his failed attempt to integrate the company into Tesla.
As the legal and financial battle intensifies, the outcome could have major implications for the AI industry, corporate governance, and the future of OpenAI’s mission.
