Elon Musk’s $97.4 Billion Bid for OpenAI
Elon Musk has once again made headlines with a massive $97.4 billion bid to take control of OpenAI, the company behind ChatGPT. The move, reported by The Wall Street Journal, has sparked discussions about the future of artificial intelligence and the ongoing power struggle in the AI industry.
So, what’s happening? Let’s break it down.
The Bid: Musk’s Offer to OpenAI
According to WSJ, Musk and a group of investors—including Valor Equity Partners, Baron Capital, 8VC, and Ari Emanuel’s investment fund—have submitted a bid to OpenAI’s board. The offer targets OpenAI’s nonprofit entity, which controls the for-profit arm responsible for ChatGPT and other AI innovations.
Musk’s attorney, Marc Toberoff, confirmed that the bid was submitted on Monday.
If successful, this acquisition would give Musk control over OpenAI’s research, development, and strategic direction—potentially reshaping the future of AI.
Why Is Musk Making This Move?
Musk has been a vocal critic of OpenAI’s direction, arguing that it has deviated from its original mission of making AI open-source and safety-focused.
In a statement shared by his attorney, Musk said:
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
This aligns with Musk’s long-standing concerns about AI’s potential dangers and the need for transparency in its development.
The Response: OpenAI CEO Fires Back
OpenAI CEO Sam Altman wasted no time responding to Musk’s bid.
In a post on X (formerly Twitter), Altman dismissed the offer with a sharp reply:
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
This response underscores the tense relationship between Musk and OpenAI’s leadership. Musk, who was once a co-founder of OpenAI in 2015, left the company in 2018 due to disagreements over its direction.
The Bigger Picture: Power Struggles in AI
Musk’s bid comes at a time when OpenAI is already navigating a complex web of investments, partnerships, and lawsuits.
Here’s what’s happening in the AI landscape:
1. SoftBank’s $40B Investment in OpenAI
SoftBank is reportedly finalizing a $40 billion investment in OpenAI, valuing the company at a staggering $260 billion.
This deal, if completed, would further cement OpenAI’s dominance in the AI industry.
2. Musk’s Lawsuit Against OpenAI
Musk has sued OpenAI, alleging that it has abandoned its nonprofit mission and is now operating as a for-profit monopoly.
His lawsuit aims to prevent OpenAI from becoming a private AI powerhouse controlled by a select few.
3. xAI’s Role in the Deal
Musk’s own AI company, xAI, is backing the bid.
If the acquisition happens, xAI could merge with OpenAI, potentially creating a direct rival to Google DeepMind and Anthropic.
What Happens Next?
Musk’s bid for OpenAI is one of the biggest AI takeover attempts in history. If successful, it could shift the AI industry towards more open-source, transparent development—or create an entirely new competitive landscape.
However, OpenAI’s leadership (and its investors) may reject the offer, choosing instead to strengthen partnerships with firms like Microsoft, SoftBank, and Oracle.
The coming weeks will be critical in determining who controls the future of AI.
Final Thoughts: Will Musk Succeed?
Musk has a history of making bold moves, from acquiring Twitter for $44 billion to launching Tesla, SpaceX, and Neuralink into global dominance.
But will he succeed in taking over OpenAI?
It all comes down to how OpenAI’s board and investors respond—and whether Musk’s vision for AI aligns with the industry’s future.