Elon Musk’s $97.4B Bid to Acquire OpenAI Faces Rejection from Sam Altman

Elon Musk’s consortium has offered $97.4 billion to acquire OpenAI’s nonprofit arm, escalating tensions between Musk and OpenAI CEO Sam Altman over the AI company’s shift to a for-profit model. Altman quickly dismissed the bid, humorously suggesting OpenAI could buy Twitter for $9.74 billion instead.

Musk, who co-founded OpenAI in 2015 but left before its rise, has been vocal about keeping AI development open-source and safety-focused. His lawsuit against OpenAI claims the company abandoned its nonprofit mission for profit.

The billionaire, who now runs xAI, Tesla, and X (formerly Twitter), is a key ally of Donald Trump and heads the Department of Government Efficiency, a White House initiative to reduce federal bureaucracy. Recently, Musk opposed a $500 billion AI project backed by OpenAI and Trump’s administration.

Musk’s bid complicates OpenAI’s ongoing fundraising, with investors like SoftBank considering a $40 billion investment at a $300 billion valuation. OpenAI was last valued at $157 billion.

Legal and financial challenges loom over Musk’s offer. Experts note that OpenAI’s board must evaluate all bids in the best interest of its beneficiaries, which could make rejecting Musk’s bid problematic. Financing such a massive deal could require Musk to sell Tesla shares or leverage his stakes in SpaceX and other ventures.

Despite skepticism, Musk’s bid may slow OpenAI’s transition to a for-profit entity, influencing AI’s future direction. With increasing scrutiny on AI governance, this high-stakes battle is far from over.