Elon Musk has made a striking bid to acquire OpenAI, the company behind ChatGPT, for a staggering $97.4 billion, a move could reshape the artificial intelligence landscape and shift the balance of power within the industry.
Musk, who has had ongoing disputes with OpenAI’s CEO, Sam Altman, has previously taken legal action against the company as he argues that OpenAI misrepresented itself as a nonprofit focused on philanthropy but has since shifted toward profit-making ventures. According to Musk, this contradicts the company’s original mission.
OpenAI operates under a unique structure. A nonprofit entity oversees OpenAI LP, a for-profit arm that has driven the company’s valuation to nearly $100 billion, much of this success is credited to Altman, whose leadership transformed OpenAI from a small research lab into an AI powerhouse.
Musk’s proposed acquisition, first reported by The Wall Street Journal, could potentially grant him majority control over OpenAI. This would position him as a dominant figure in the AI space, challenging his own artificial intelligence venture, X.AI.
Marc Toberoff, the attorney representing Musk’s investor group, issued a statement criticizing OpenAI’s direction. He argued that if OpenAI intends to become a fully for-profit entity, it should fairly compensate the nonprofit for losing control of such a groundbreaking technology.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Toberoff said. “We will make sure that happens.”
Altman, known for his sharp wit, dismissed the offer with a bold counterproposal. In a post on X (formerly Twitter), he wrote, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Swindler
— Elon Musk (@elonmusk) February 10, 2025Elon Musk, a co-founder of OpenAI, left the organization in 2018 over disagreements regarding its transition to a for-profit model. OpenAI was originally established with the goal of ensuring artificial general intelligence (AGI) would be developed safely for humanity.
However, as major investors like Microsoft and Thrive Capital backed the company, financial growth became a priority, potentially pushing OpenAI toward rapid innovation at the expense of safety.
In late 2023, OpenAI’s board controversially fired and then reinstated CEO Sam Altman, with former board members citing concerns over the company moving too fast without proper safety measures.
Musk initially sued OpenAI in June 2024 but withdrew the lawsuit after the company published emails showing he had previously acknowledged the need for substantial funding to support AI development.
However, in August 2024, Musk filed a new lawsuit, accusing OpenAI of prioritizing profits over ethical AI advancement and even engaging in racketeering.
OpenAI, in turn, dismissed Musk’s claims, suggesting he was bitter about losing influence after failing to merge the organization with Tesla.
