Elon Musk Makes $97.4 Billion Offer to Acquire OpenAI

Elon Musk has made a bold move to take control of OpenAI’s nonprofit arm, offering a staggering $97.4 billion, according to a report by The Wall Street Journal. The offer, reportedly submitted on Monday, comes as OpenAI accelerates its shift toward a for-profit business model-something Musk argues is a betrayal of its founding principles of developing AI safely and transparently.

Musk’s bid is backed by his AI company xAI, along with investment firms Valor Equity Partners and 8VC, as well as Hollywood executive Ari Emanuel. The group directly approached OpenAI’s board, reportedly stating that they are willing to match or exceed any competing offers.

Musk, who co-founded OpenAI alongside Sam Altman in 2015 before departing in 2019, has been vocal about his concerns regarding OpenAI’s current trajectory. Through his attorney, Marc Toberoff, he reiterated that OpenAI should remain an open-source and safety-focused organization rather than prioritizing profit.

However, OpenAI CEO Sam Altman swiftly rejected Musk’s offer with a post on X (formerly Twitter), stating,

“No thank you, but we will buy Twitter for $9.74 billion if you want.”

OpenAI, the company behind ChatGPT, is seeking major investments to sustain its AI research and development. The company has been in talks for a $40 billion funding round and a $500 billion infrastructure project reportedly linked to former President Donald Trump. Musk, who has past business ties to Trump, has criticized the project as “reckless.”

This is not the first time Musk has challenged OpenAI’s direction. In August 2023, he filed a lawsuit against OpenAI and Altman, accusing them of straying from the company’s original mission to develop AI for the benefit of humanity. In November, he took legal action to prevent OpenAI from transitioning to a for-profit entity, arguing it violated the company’s founding nonprofit agreement.

Musk’s takeover bid adds a new layer of complexity to OpenAI’s negotiations with Microsoft and other key investors. It also highlights Musk’s growing influence as an advisor to the Trump administration, where he has been involved in initiatives aimed at improving government efficiency.

While it remains to be seen how OpenAI will respond in the long run, Musk’s latest move signals his intent to reshape the AI industry in alignment with his vision for ethical and transparent AI development.