Elon Musk and a coalition of investors have submitted an unsolicited $97.4 billion bid to acquire control of OpenAI, intensifying an already public and legal battle between Musk and OpenAI CEO Sam Altman over the future of artificial intelligence. The offer, first reported by The Wall Street Journal on Monday, targets the nonprofit entity that oversees OpenAI's operations.
Musk's attorney, Marc Toberoff, confirmed the bid's submission to OpenAI's board, stating, "It's time for OpenAI to return to the open-source, safety-focused force for good it once was." The proposal is backed by Musk's own AI startup, xAI, alongside investment firms including Valor Equity Partners, Baron Capital, and 8VC, among others. If successful, the deal could potentially lead to a merger between OpenAI and xAI.
Altman swiftly rejected Musk's bid with a sarcastic post on X: "No thank you but we will buy Twitter for $9.74 billion if you want." Musk, in response, called Altman a "swindler" and later wrote, "Never a dull moment on X."
The power struggle between Musk and Altman has been building since Musk left OpenAI in 2018 after failing to take control of the organization. Originally established as a nonprofit focused on AI safety, OpenAI later created a for-profit subsidiary, securing major investments from Microsoft. Musk, who co-founded OpenAI in 2015, has since become one of its most vocal critics, suing the company earlier this year over its shift toward commercial AI development.
The battle over OpenAI's future coincides with the launch of a massive AI infrastructure initiative known as Stargate, which was announced by President Donald Trump shortly after his inauguration. Stargate, backed by OpenAI, SoftBank, and Oracle, aims to invest up to $500 billion in U.S.-based AI development, beginning with an initial $100 billion funding round. Microsoft, NVIDIA, and chipmaker Arm are also involved in the project.
Musk has publicly expressed skepticism over Stargate's funding, questioning whether OpenAI and its partners have the financial resources to meet their ambitious targets. "They don't actually have the money," Musk posted on X, adding, "SoftBank has well under $10B secured. I have that on good authority."
OpenAI's board has not yet issued an official response to Musk's bid, and it remains unclear whether it will entertain offers to restructure the company's ownership. Meanwhile, Altman continues to push ahead with OpenAI's growth strategy, which includes a potential shift toward a fully for-profit business model.
