Elon Musk Makes Bold $97.4B Offer to Buy OpenAI

Elon Musk is making headlines again, this time with a bold $97.4 billion offer to acquire OpenAI’s nonprofit arm. According to The Wall Street Journal, Musk’s proposal was formally submitted to OpenAI’s board on Monday.

This potential takeover is backed by a powerful lineup of investors, including:

• Musk’s own AI venture, xAI
• Valor Equity Partners
• Hollywood executive Ari Emanuel
• Palantir co-founder Joe Lonsdale’s 8VC

The bid adds another layer of complexity to OpenAI’s future, as CEO Sam Altman is already managing several major deals, including a $40 billion fundraising round and a $500 billion AI infrastructure project.

Why Is Musk Trying to Buy OpenAI?

Musk co-founded OpenAI in 2015 alongside Altman but left in 2019 over disagreements about the company’s direction.

Since then, he has been an outspoken critic of OpenAI’s shift toward a for-profit model, accusing it of straying from its original mission of developing AI transparently and safely.

His latest offer to buy OpenAI appears to be a strategic move to regain influence over the company and push it back toward an open-source approach.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement via his lawyer, Marc Toberoff. “We will make sure that happens.”

The Challenges Ahead

Musk’s bid could disrupt OpenAI’s transition to a for-profit model, as his team has indicated they are willing to match or exceed any competing offers. This puts Altman in a tough spot, as he is already negotiating equity deals with Microsoft and other stakeholders.

If accepted, Musk’s acquisition could reshape OpenAI’s trajectory. If rejected, it may fuel further tensions between Musk and OpenAI’s leadership.

Altman’s Response: A Snarky Tweet

Shortly after news of the bid broke, Altman responded on X (formerly Twitter) with a tongue-in-cheek remark:

OpenAI referred to Altman’s post when asked for comment. Meanwhile, Musk’s legal team has yet to issue any further statements.

What Happens Next?

With AI at the center of technological and financial competition, Musk’s bid signals a potential power shift in the industry. Whether OpenAI accepts or rejects the offer, this move is bound to shape the future of AI development.

Would Musk owning OpenAI change the AI landscape for better or worse? That remains to be seen.