Elon Musk-Led Consortium Bids $97.4 Billion to Acquire OpenAI

A Bold Takeover Bid

A consortium of investors, led by billionaire Elon Musk, has submitted a $97.4 billion bid to acquire OpenAI, the company behind the revolutionary AI chatbot ChatGPT. The offer, confirmed by Musk’s attorney Marc Toberoff, was formally presented to OpenAI’s board on Monday, targeting all assets of the organization.

This bid marks the latest chapter in the ongoing rivalry between Musk and OpenAI CEO Sam Altman, who have clashed over the company’s direction and the future of artificial intelligence.

Altman’s Witty Response

Reacting to Musk’s offer, Altman took to X (formerly Twitter) and quipped:

"No thank you, but we will buy Twitter for $9.74 billion if you want."

The remark alludes to Musk’s $44 billion purchase of Twitter in 2022, which he later rebranded as X.

OpenAI’s Evolution Sparks Disputes

Musk and Altman co-founded OpenAI in 2015 as a non-profit AI research lab, but their relationship soured after Musk’s departure in 2018. The core disagreement revolves around OpenAI’s shift from a non-profit model to a for-profit entity, which Musk argues betrays the company’s founding mission of advancing AI for the benefit of humanity.

On the other hand, OpenAI maintains that its transition is necessary to attract the massive financial backing required to develop leading-edge AI models.

Musk’s Vision for OpenAI

Musk, who has been critical of OpenAI’s commercialization, insists that the organization should return to its open-source roots and maintain a safety-first approach to AI.

"It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens," Musk stated.

Funding Disparities in OpenAI’s Valuation

Musk’s $97.4 billion bid is significantly lower than OpenAI’s $157 billion valuation in October 2024 and far below its potential $300 billion valuation in ongoing funding discussions.

Musk’s AI venture, xAI, is among the key backers of the bid, alongside major private equity firms Baron Capital Group and Valor Management. Musk’s legal team has hinted at raising the bid if necessary, stating that the consortium is willing to match or exceed competing offers.

OpenAI’s $500 Billion AI Infrastructure Project

Beyond the acquisition bid, OpenAI is also moving forward with an ambitious $500 billion AI infrastructure initiative in the United States. The project, dubbed "The Stargate Project," is a joint effort with tech giant Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund.

Announced at the White House by U.S. President Donald Trump, the project has been billed as "the largest AI infrastructure initiative in history," aimed at cementing U.S. leadership in AI technology.

Musk’s Skepticism Over OpenAI’s Grand Plans

Despite his ties to Trump as a top advisor, Musk has cast doubt on the feasibility of The Stargate Project, suggesting that its financial commitments are unsubstantiated.

"They don’t actually have the money," Musk claimed, without offering further details or evidence to support his assertion.

The Future of OpenAI: A Battle for AI Leadership

With Musk pushing for a return to OpenAI’s original vision and Altman steering it toward a commercial future, the battle over OpenAI’s ownership and direction will likely intensify.

As OpenAI continues to shape the AI landscape, the outcome of this takeover bid could determine the next phase of AI development—whether under Musk’s leadership or Altman’s vision for a profit-driven AI powerhouse.

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