Elon Musk-Led Consortium Offers $97.4 Billion for OpenAI

In a dramatic turn of events, a consortium of investors led by Elon Musk has submitted a staggering $97.4 billion bid to acquire OpenAI, the artificial intelligence powerhouse behind ChatGPT. The offer, first reported by The Wall Street Journal on February 10, 2025, marks the latest escalation in the long-standing feud between Musk and OpenAI CEO Sam Altman. The bid is backed by Musk’s AI venture, xAI, and prominent investors, including Valor Equity Partners, Baron Capital, and Endeavor CEO Ari Emanuel’s investment fund.

The Offer and Its Implications

The $97.4 billion bid aims to take control of OpenAI’s nonprofit entity, which oversees the company’s operations. Musk’s attorney, Marc Toberoff, stated that the funds would be used exclusively to further OpenAI’s original charitable mission of developing open-source, safety-focused AI for the benefit of humanity. Musk has criticized OpenAI’s shift toward a for-profit model, arguing that it betrays the company’s founding principles.

OpenAI, currently valued at $157 billion, has been transitioning to a for-profit structure to secure the resources needed to develop cutting-edge AI models. This move has been a point of contention between Musk and Altman, with Musk filing multiple lawsuits against OpenAI in 2024, accusing the company of abandoning its nonprofit roots.

Sam Altman’s Witty Rejection

In response to Musk’s offer, Altman took to X (formerly Twitter) with a cheeky retort: “No thank you, but we will buy Twitter for $9.74 billion if you want.” This playful jab references Musk’s $44 billion acquisition of Twitter in 2022 and underscores the tension between the two tech titans. Musk fired back, calling Altman a “swindler” and “Scam Altman” in subsequent posts.

The Elon Musk–Sam Altman Feud: A Brief History

Musk and Altman co-founded OpenAI in 2015 as a nonprofit research lab dedicated to developing artificial general intelligence (AGI) for the public good. However, their relationship soured after Musk left the company in 2018, reportedly due to disagreements over its direction. Musk has since accused Altman of prioritizing profit over OpenAI’s original mission, while Altman has defended the for-profit transition as necessary to fund the company’s ambitious AI projects.

The Broader AI Landscape

The bid comes at a pivotal moment for OpenAI, which has emerged as a leader in generative AI following the launch of ChatGPT in 2022. The company has secured significant investments from Microsoft and is reportedly close to finalizing a $40 billion deal with SoftBank, valuing OpenAI at $260 billion.

Meanwhile, Musk’s xAI has been positioning itself as a competitor to OpenAI, with its open-source Grok model. Musk has emphasized xAI’s commitment to transparency and safety, contrasting it with OpenAI’s perceived shift away from these values.

What’s Next?

The OpenAI board has yet to formally respond to Musk’s offer, but Altman’s swift rejection suggests the bid is unlikely to succeed. However, the proposal has reignited debates about the ethics of AI development and the role of profit in advancing transformative technologies.

As the AI wars heat up, the Musk–Altman rivalry continues to captivate the tech world. Whether OpenAI remains independent or succumbs to external pressures, its decisions will undoubtedly shape the future of artificial intelligence.

For now, the ball is in OpenAI’s court—and the stakes have never been higher.