Sam Altman shuts down Elon Musk’s $97.4 billion bid for OpenAI, rejecting the offer and emphasizing that OpenAI’s structure prevents any single entity from taking control. Tesla CEO Elon Musk has led a group of investors in offering $97.4 billion to acquire OpenAI’s non-profit arm. According to The Wall Street Journal, the bid has escalated tensions between Musk and OpenAI, particularly its CEO, Sam Altman. Musk has accused the AI firm of straying from its original open-source, non-profit goals. However, Altman has dismissed the offer outright.
The proposal was submitted by Musk’s lawyer, Marc Toberoff, to OpenAI’s board. Following this, Musk stated, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.” Despite Musk’s claims, Altman remains firm in his stance. He responded publicly on X, formerly Twitter, with a sarcastic remark: “No thank you but we will buy Twitter for $9.74 billion if you want.”
Internally, Altman reassured OpenAI employees, stating that the company’s structure prevents any individual from taking control. He described Musk’s bid as an attempt to undermine OpenAI’s progress.
Investors Backing Musk’s Bid
Sam Altman shuts down Elon Musk’s $97.4 billion bid for OpenAI, responding with a sarcastic remark on X, offering to buy Twitter for $9.74 billion instead. Musk’s company, xAI, is leading the bid with the potential for a merger if the deal succeeds. Several high-profile investors are involved, including Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC, Hollywood executive Ari Emanuel, and Palantir co-founder Joe Lonsdale.
OpenAI was founded in 2015 as a non-profit by Altman, Musk, and other investors. However, Musk left the company in 2018 after disagreements over its direction. In 2019, OpenAI created a for-profit entity to attract investors, including Microsoft. The firm is now transitioning into a fully for-profit model, with the non-profit arm retaining a stake.
Musk has repeatedly criticized this shift, claiming OpenAI and Microsoft are monopolizing the AI industry. He has also sued both companies, arguing they are preventing funding from reaching competitors like xAI.
Legal Battles Between Musk and OpenAI
Musk has filed multiple lawsuits against OpenAI. In one case, he alleged that the company had abandoned its mission of public-benefit AI research in favor of profit. Another lawsuit accused OpenAI of aggressively pursuing artificial general intelligence (AGI) with financial gain as the primary objective. Musk even accused the company of engaging in racketeering.
In November 2023, OpenAI’s board removed Altman as CEO, citing a lack of transparency in his communication. However, following backlash, Altman was reinstated five days later, and the board was restructured.
Strategic Implications of Musk’s Offer
Sam Altman shuts down Elon Musk’s $97.4 billion bid for OpenAI, reinforcing that OpenAI will not revert to its non-profit origins despite Musk’s claims. Industry experts believe Musk’s offer could force OpenAI to reassess its valuation. AI&Beyond CEO Jaspreet Bindra described the bid as a strategic move that challenges OpenAI’s governance. He noted that Musk’s valuation effectively values the non-profit entity as controlling a 51% stake, potentially threatening major investors like Microsoft.
While Musk’s acquisition attempt is unlikely to succeed, it has intensified the debate over OpenAI’s future. His actions signal a broader conflict over AI governance, ethics, and commercialization. Whether OpenAI remains independent or faces further challenges, the power struggle is set to reshape the AI landscape.
Elon Musk’s bid to acquire OpenAI’s non-profit arm highlights a deep conflict over AI governance. His claim that OpenAI has abandoned its original mission raises important ethical and strategic concerns. However, the bid also raises questions about Musk’s own motives and whether his actions are truly in the interest of AI safety.
