Elon Musk, one of the most influential figures in the tech industry, has once again made headlines with a bold move — offering to buy OpenAI’s nonprofit arm for $97.4 billion. The proposal has sparked debates about the future of OpenAI, the legal and financial feasibility of such an acquisition, and the ongoing rivalry between Musk and OpenAI’s CEO, Sam Altman. While Musk’s offer may seem like just another dramatic twist in the ongoing battle between the two tech giants, it raises important questions about the control and direction of artificial intelligence development.
Musk’s bid is not just about acquiring a company; it is about control over one of the most powerful AI organizations in the world. OpenAI, initially founded as a nonprofit with the mission of ensuring that artificial intelligence benefits all of humanity, has since transitioned into a for-profit entity with significant backing from Microsoft.
Musk, a co-founder of OpenAI, left the company in 2019, citing conflicts of interest due to Tesla’s growing focus on AI. Since then, he has repeatedly criticized OpenAI’s shift towards commercialization and accused it of straying from its original purpose.
The offer from Musk and a group of investors comes at a time when OpenAI is in the middle of a massive restructuring effort. Altman is attempting to convert OpenAI’s for-profit arm into a public benefit corporation, a move that would allow it to raise billions of dollars while still maintaining a level of public accountability.
The company is in talks with investors, including SoftBank, for a $40 billion funding round that could push its valuation to $300 billion. Musk’s bid, if taken seriously, could disrupt these plans and force OpenAI to reassess its financial strategy.
Musk’s offer targets a crucial aspect of OpenAI’s structure: the nonprofit board that holds legal control over the organization. Although the for-profit arm of OpenAI is responsible for its operations, the nonprofit board has ultimate authority over the company’s direction.
If Musk were to acquire the nonprofit arm, he could potentially influence OpenAI’s decisions, including its partnerships, research focus, and leadership. This move could complicate Altman’s efforts to separate OpenAI from the nonprofit structure, as any sale of the nonprofit would require careful financial and legal considerations.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
Sam Altman wasted no time in rejecting Musk’s bid. In a social media post, he dismissed the offer with a simple “no thank you” and even offered to buy X (formerly Twitter) for $9.74 billion in response. Altman also reassured OpenAI employees in an internal letter, stating that the board had no interest in Musk’s proposal and that the company’s structure was designed to prevent any single individual from taking control. His response highlights the deep animosity between the two leaders and their competing visions for the future of AI.
Musk, known for his aggressive business tactics, has a history of acquiring companies and reshaping them to fit his vision. He was an early investor in Tesla and eventually took over the company by sidelining its original founders.
More recently, he acquired Twitter for $44 billion, rebranded it as X, and implemented drastic changes that altered the platform’s operations and leadership. Given this track record, it is not surprising that he is attempting a similar move with OpenAI. However, OpenAI’s complex structure and strong investor backing make this situation different from his previous acquisitions.
The rivalry between Musk and Altman goes beyond business competition. The two have a long history, dating back to OpenAI’s founding in 2015. Musk was one of the initial backers of the company and contributed over $44 million before leaving in 2019. His departure was not amicable — he reportedly wanted more control over OpenAI and proposed merging it with Tesla. When his efforts were unsuccessful, he left and later criticized the company for moving away from its nonprofit mission.
Tensions escalated further in 2023 when Altman was briefly ousted as OpenAI’s CEO. Musk supported OpenAI’s chief scientist, Ilya Sutskever, who played a key role in Altman’s removal. Musk later sued OpenAI, accusing it of abandoning its commitment to open-source AI development and aligning too closely with Microsoft.
Although he withdrew the lawsuit, he refiled it in 2024 with additional allegations. OpenAI responded by releasing emails suggesting that Musk had previously supported the company’s transition toward a for-profit model.
Musk’s bid to acquire OpenAI also comes at a time when he has been heavily involved in government AI initiatives. As the head of the Department of Government Efficiency (DOGE), he has been overseeing AI-driven reforms across various government agencies.
His team has been using AI to analyze federal spending and streamline operations, raising concerns about data security and privacy. The Trump administration’s stance on AI regulation aligns closely with Musk’s views, favoring minimal oversight and deregulation to encourage technological advancement.
Sam Altman comments on Elon’s $97.4B bid
– Elon tries all sorts of things for a long time
– i wish he would compete by building a better product
– his whole life is from a position of insecurity. i feel for himHOLY FUCK HE COOKED HIM pic.twitter.com/Ogii2n05u2
— Sahil (@sahilypatel) February 11, 2025
Meanwhile, Altman has been pushing his own vision for AI development. He recently proposed a $500 billion project called Stargate, aimed at building massive AI infrastructure in collaboration with the U.S. government and SoftBank. Musk has publicly criticized Stargate, calling it a wasteful initiative driven by corporate interests. This disagreement shows the broader ideological divide between the two tech leaders—Musk advocates for AI transparency and decentralized control, while Altman supports large-scale AI investment backed by government and private funding.
Despite Musk’s aggressive bid, the chances of him successfully acquiring OpenAI remain slim. The company’s board has no incentive to sell to a competitor, and investors like Microsoft would likely oppose any deal that gives Musk control over OpenAI’s technology. Furthermore, the legal and regulatory challenges of such an acquisition would be significant. OpenAI’s nonprofit status complicates any potential sale, as it would require approval from regulatory bodies and possibly even legal action to determine fair market value.
Even if Musk’s bid fails, it has already had an impact on OpenAI’s trajectory. By putting a price on the nonprofit’s control, he has made it more difficult for Altman to fully transition OpenAI into a for-profit entity. Investors and regulators will now scrutinize any restructuring efforts more closely, potentially delaying OpenAI’s expansion plans. Additionally, the public feud between Musk and Altman has further divided the AI industry, with different factions aligning themselves with competing visions for the future of artificial intelligence.
Ultimately, Musk’s attempt to buy OpenAI may be more of a strategic move than a genuine acquisition attempt. By making a high-profile bid, he has forced OpenAI to address its governance structure and raised questions about its financial independence. He has also positioned himself as a major player in the AI industry, reinforcing his influence in discussions about AI regulation and development.
