In a bold move that could reshape the landscape of artificial intelligence, Elon Musk is spearheading a group of investors aiming to acquire OpenAI, the parent company of ChatGPT, for a staggering $97.4 billion.
Musk, who co-founded OpenAI in 2015 but later parted ways over disagreements about its direction, has been at odds with CEO Sam Altman for years. He has filed multiple legal complaints, accusing OpenAI and its leadership of misrepresenting the company as a nonprofit while shifting toward a profit-driven model. Musk argues that this shift violates OpenAI’s original mission of prioritizing AI safety and public benefit.
OpenAI operates under a nonprofit umbrella but also controls OpenAI LP, a for-profit subsidiary that has propelled the company’s valuation to nearly $100 billion in just a few years. Altman is widely credited as the architect of this rapid growth and commercialization.
The Wall Street Journal first reported Musk’s bid, which, if successful, would give him majority control of OpenAI—placing it alongside his own AI venture, xAI.
“If Sam Altman and OpenAI’s current board are determined to become a fully for-profit corporation, it is crucial that the nonprofit entity be fairly compensated for what is being taken from it—control over one of the most transformative technologies of our time,” said Marc Toberoff, an attorney representing Musk’s investment group. “OpenAI must return to its original mission as an open-source, safety-focused force for good. We will ensure that happens.”
Altman, however, swiftly dismissed the offer. In a post on X, he responded, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Musk’s departure from OpenAI in 2018 came after an unsuccessful attempt to bring the company under Tesla’s umbrella. Since then, OpenAI has evolved into an AI powerhouse, securing backing from major investors like Microsoft and venture capital firm Thrive Capital. While originally founded with concerns about the existential risks of artificial general intelligence (AGI), OpenAI has since accelerated its commercial AI development—raising concerns among some that safety is being sidelined in favor of growth.
This tension culminated in a dramatic boardroom shake-up in late 2023 when OpenAI’s board abruptly fired Altman, only to reinstate him days later. The incident underscored internal concerns about the speed and direction of OpenAI’s advancements.
Musk initially sued OpenAI in June 2024 but later withdrew the case after internal emails surfaced showing that he had previously acknowledged the need for significant funding to develop AI. However, in August 2024, Musk launched a new lawsuit, accusing OpenAI of prioritizing profits over safety and even alleging racketeering.
For its part, OpenAI has suggested that Musk’s actions stem from frustration over his lack of involvement in the company’s success. Whether Musk’s latest bid succeeds or not, the battle over OpenAI’s future is far from over.
