In a bold move that has sent ripples through the artificial intelligence (AI) community, Elon Musk, leading a consortium of investors, has extended a $97.4 billion offer to acquire control of OpenAI.
This proposal underscores the escalating tensions between Musk and OpenAI’s CEO, Sam Altman, highlighting a profound clash over the organization’s direction and foundational principles.
Background: The Genesis of OpenAI
Founded in 2015 as a non-profit entity, OpenAI emerged with the mission to develop artificial general intelligence (AGI) that benefits all of humanity.
Elon Musk and Sam Altman were among its co-founders, united by a shared vision of open-source and safety-centric AI development.
However, in 2019, OpenAI transitioned to a “capped-profit” model, aiming to attract substantial investments necessary for advancing its research. This shift marked the beginning of ideological divergences between Musk and Altman.
The Bid: Key Details
- Offer Amount: $97.4 billion
- Consortium Composition: Led by Musk’s AI venture, xAI, and supported by investors including Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC, and media executive Ari Emanuel.
- Objective: To revert OpenAI to its original open-source, safety-focused mission, countering its current trajectory towards a for-profit model.
Sam Altman’s Response
Altman swiftly dismissed the acquisition proposal, taking to X (formerly Twitter) to retort, “no thank you but we will buy twitter for $9.74 billion if you want.”
This pointed response not only rejects the offer but also alludes to Musk’s 2022 acquisition of Twitter for $44 billion. Altman further commented on Musk’s “insecurity,” suggesting that the bid was an attempt to “slow down a competitor.”
Legal Entanglements
The friction between Musk and Altman isn’t confined to boardroom negotiations. In March 2024, Musk initiated legal action against OpenAI, alleging that the organization had deviated from its original non-profit mission, prioritizing profit over public welfare.
This lawsuit accentuates the deepening rift between the two tech magnates.
OpenAI’s Evolution and Financial Trajectory
Under Altman’s leadership, OpenAI has pursued significant funding to fuel its ambitious projects:
- October 2024: Secured $6.6 billion, valuing the company at approximately $157 billion.
- Current Negotiations: Engaged in discussions with SoftBank for an investment ranging between $15 to $25 billion, potentially elevating OpenAI’s valuation to over $300 billion.
These financial maneuvers are part of OpenAI’s broader strategy to transition into a for-profit entity, a move Musk staunchly opposes.
The Stargate Project: A Point of Contention
OpenAI’s involvement in the Stargate Project, a $500 billion initiative announced in January 2025, has further fueled disagreements.
The project, a collaboration with SoftBank, Oracle, Microsoft, Nvidia, and MGX, aims to develop new data centers to support AI advancements and generate over 100,000 jobs across the United States.
Musk has publicly criticized this venture, questioning the financial viability of the involved parties and expressing concerns over the project’s alignment with OpenAI’s original mission.
| Date | Event |
|---|---|
| 2015 | OpenAI founded as a non-profit by Musk, Altman, and others. |
| 2019 | OpenAI transitions to a “capped-profit” model to attract investments. |
| March 2024 | Musk files a lawsuit against OpenAI, alleging deviation from its original mission. |
| October 2024 | OpenAI raises $6.6 billion, valuing the company at $157 billion. |
| January 2025 | Announcement of the $500 billion Stargate Project, with OpenAI as a key participant. |
| February 10, 2025 | Musk-led consortium offers $97.4 billion to acquire control of OpenAI. |
| February 11, 2025 | Altman publicly rejects Musk’s bid, escalating the public dispute. |
The unfolding saga between Elon Musk and Sam Altman over OpenAI’s future underscores a fundamental debate about the role and governance of AI in society.
As the narrative develops, the tech industry and the public at large keenly await the outcomes of this high-stakes power struggle, recognizing its potential to shape the trajectory of artificial intelligence for years to come.
FAQs
Why did Elon Musk leave OpenAI?
Musk departed from OpenAI’s board in 2018 due to disagreements over the organization’s direction and funding strategies.
What is the Stargate Project?
The Stargate Project is a $500 billion initiative aimed at developing data centers to support AI advancements and creating over 100,000 jobs across the U.S.
How has OpenAI’s valuation changed over time?
In October 2024, OpenAI was valued at approximately $157 billion after raising $6.6 billion. Current negotiations with SoftBank could elevate its valuation to over $300 billion.