On February 10, 2025, a consortium led by Elon Musk made a $97.4 billion offer to take control of OpenAI’s nonprofit arm, escalating tensions between Musk and OpenAI CEO Sam Altman. The bid, which includes backing from Musk’s AI startup xAI, Baron Capital, and other investors, seeks to realign OpenAI with its original nonprofit mission. Altman swiftly rejected the offer, responding on X (formerly Twitter), “no thank you but we will buy twitter for $9.74 billion if you want.”
Musk co-founded OpenAI with Altman in 2015 as a nonprofit dedicated to AI research for the public good. He left in 2018, citing disagreements over the company’s direction, and later launched xAI in 2023. Since then, Musk has been vocal about his concerns regarding OpenAI’s shift toward a for-profit model. He has argued that the organization is prioritizing profit over AI safety, transparency, and accessibility.
The bid comes at a crucial time for OpenAI, which is actively raising funds for its next-generation AI models. The company recently secured a multibillion-dollar partnership with Microsoft and announced a $500 billion AI initiative in collaboration with the U.S. government. If Musk’s bid were successful, it could drastically reshape OpenAI’s trajectory and its partnerships.
While Altman has rejected the offer, legal experts suggest that Musk’s group could attempt a hostile takeover by appealing to OpenAI’s board and investors. The legal framework governing OpenAI’s nonprofit arm adds complexity, as any major structural change would require regulatory approval. Industry analysts speculate that Musk’s move is not just a financial play but also a strategic effort to influence AI development on a global scale.
Reactions to the bid have been mixed. Supporters argue that Musk’s leadership could restore OpenAI’s original mission and increase transparency in AI research. Critics, however, warn that his influence could lead to unpredictable shifts in OpenAI’s governance and business model. The ongoing power struggle underscores the growing competition in AI development, with major tech leaders vying for control over the industry’s future.
With AI playing an increasingly pivotal role in global technology and security, the outcome of this bid will have significant implications. If Musk continues to push for OpenAI’s control, it could spark regulatory scrutiny and further disputes within the AI community.
