A consortium led by billionaire Elon Musk announced on Monday an offer of $97.4 billion to acquire the nonprofit organization controlling OpenAI. The offer comes amid ongoing legal tensions between Musk and OpenAI CEO Sam Altman, underscoring a deepening rift over the future direction of one of the world’s most influential AI companies.

The proposed acquisition, if successful, would mark a seismic shift in the landscape of artificial intelligence development, placing Musk in control of the company he co-founded in 2015 but left following disagreements over its strategy and governance.

Musk’s Vision for OpenAI

In a press release accompanying the announcement, Musk framed the offer as an effort to restore OpenAI to its original mission of open-source, safety-focused AI development.

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

The consortium backing Musk’s bid includes his AI company, xAI, which was founded in 2023 to compete directly with OpenAI. According to sources familiar with the matter, xAI could merge with OpenAI if the deal goes through.

OpenAI CEO Sam Altman wasted no time responding to Musk’s bid. In a pointed post on X (formerly Twitter), Altman wrote:

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

The sarcastic remark highlighted the strained relationship between the two tech leaders, who have clashed repeatedly over the years on issues ranging from AI safety to business strategy.

The bid comes against the backdrop of a high-stakes legal battle between Musk and OpenAI. Musk has filed a lawsuit seeking to block OpenAI’s transition from a nonprofit to a for-profit entity, arguing that the move violates the original intent of its founding.

Musk’s lawsuit claims that OpenAI’s founders, including Altman, initially sought his funding for a nonprofit dedicated to AI research for the benefit of humanity. However, Musk alleges that the organization is now driven by profit motives, citing its pursuit of massive funding rounds and high-stakes projects like the $500 billion Stargate initiative.

The Stargate project, unveiled with fanfare at the White House after former President Donald Trump’s return to office, has drawn criticism from Musk, who questioned the financial backing and feasibility of the ambitious venture.

Financial Challenge

Even if the legal hurdles are cleared, Musk’s consortium faces a daunting financial challenge. OpenAI was valued at $157 billion during its most recent funding round in October 2024, making it one of the world’s most valuable private companies.

SoftBank Group is reportedly in talks to lead a $40 billion funding round for OpenAI, potentially boosting its valuation to $300 billion. The size of Musk’s offer would require him to raise significant capital, potentially involving partnerships with major financial institutions.

Industry experts have noted that even without antitrust implications, the complexity of the deal could pose significant challenges.

AI Development

The outcome of Musk’s bid has significant implications for the future of AI development. OpenAI has been at the forefront of generative AI technology, developing groundbreaking models that have transformed industries ranging from healthcare to entertainment.

However, the company’s shift toward a for-profit model has raised concerns among some researchers and ethicists who fear that commercial pressures could undermine its commitment to AI safety and ethical development.

Musk’s consortium argues that returning OpenAI to its nonprofit roots would better serve humanity by prioritizing transparency and collaboration over profit-driven secrecy.

The tech industry has been abuzz with reactions to Musk’s bid.

“It’s a bold move, but not surprising coming from Musk,” said AI analyst Jessica Lee. “He’s been very vocal about his concerns with OpenAI’s current trajectory and clearly wants to assert control over its future.”

Others, however, questioned the feasibility of the bid and the potential consequences of Musk consolidating power in the AI sector.

“Centralizing control of AI development in the hands of one individual, even someone as visionary as Musk, raises important ethical and governance questions,” said Dr. Raj Patel, an AI ethics researcher at Stanford University.

Neither OpenAI nor Musk’s attorney, Marc Toberoff, responded to requests for comment. Microsoft, a key backer of OpenAI, also declined to comment on the situation.

As the legal battle unfolds and the consortium’s bid is evaluated, the tech world will be watching closely to see whether Musk’s ambitious gambit succeeds or whether Altman and OpenAI can maintain their independence.

Regardless of the outcome, the stakes are high for the future of AI innovation and governance.