Why Elon Musk Wants to Buy OpenAI: Inside the Bid
Elon Musk’s $97.4 Billion Offer for OpenAI – On February 10, 2025, Elon Musk and his investor group reportedly made a $97.4 billion bid to acquire OpenAI. The bid was directed at the nonprofit’s board of directors, hoping to take control of the groundbreaking AI company. However, OpenAI’s current CEO, Sam Altman, rejected the offer, responding with a lighthearted post on X, stating, “no thank you but we will buy Twitter for $9.74 billion if you want.”
The Feud Between Altman and Musk
The rejection of Musk’s offer is a continuation of the ongoing feud between the two tech giants, which traces back to their differing visions for OpenAI’s future. While Altman has advocated for transforming OpenAI into a for-profit organization, Musk has staunchly disagreed, pushing for the company to remain focused on its nonprofit roots. Musk’s feud with Altman even led to a lawsuit in August 2024, where Musk accused OpenAI and Altman of violating their promises to maintain nonprofit status.
Musk’s Lawsuit and Statement
Musk, through his lawyer Marc Toberoff, made a statement emphasizing the importance of OpenAI returning to its original open-source and safety-focused mission. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk’s statement read. This rhetoric mirrors Musk’s broader concerns about the company’s shift toward commercialization. Musk’s group of investors, including xAI, Vy Capital, Baron Capital, and 8VC, have reportedly pledged to match or exceed any competing bids.
OpenAI’s Current Position and Valuation
The current conflict arises against the backdrop of OpenAI’s growth and rising valuation. After the spin-off of its for-profit subsidiary, OpenAI Global, in 2019, OpenAI has drawn substantial investment, including a $6.6 billion funding round in October 2024, bringing its valuation to a staggering $157 billion. According to CNBC, OpenAI is reportedly in talks for a $40 billion deal with Softbank, potentially pushing its valuation to $260 billion.
The Future of OpenAI and Musk’s Role
While Sam Altman rejects Musk’s $97.4 billion offer, Musk’s call for a return to OpenAI’s nonprofit ideals and his involvement through xAI indicates that the battle for control of OpenAI is far from over. The AI sector’s rapid advancements, coupled with investment-backed AI infrastructure, will likely continue to fuel this power struggle in the coming months.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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