A group of investors led by Elon Musk has made an unsolicited bid to acquire the nonprofit organisation that controls OpenAI for $97.4bn.
The offer is the latest development in the long-standing feud between Musk and OpenAI CEO Sam Altman over the direction of the AI company, which was co-founded by Musk in 2015.
Go deeper with GlobalData
Musk, who left OpenAI before it became a major player in the tech industry, has been vocal about his discontent with the company’s shift from its nonprofit origins to a for-profit model. He has accused OpenAI of abandoning its initial mission to act as a charity focused on openness and safety in AI development.
In response to the bid, Musk reiterated his desire to return OpenAI to its original, altruistic vision. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement. “We will make sure that happens.”
In an unexpected counteroffer, Altman took to Musk’s social media platform, X, to decline the bid with a response: “No thank you but we will buy Twitter for $9.74bn if you want.”
Musk had acquired Twitter in 2022 for $44bn.
The bid, which is backed by Musk’s AI startup xAI, is said to involve the possibility of a merger between xAI and OpenAI if the deal proceeds.
According to Marc Toberoff, a lawyer representing Musk’s investors, the other backers of the proposal include Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC, and Ari Emanuel through his investment fund.
OpenAI, which is in the process of transitioning from a nonprofit to a for-profit entity, argues that this shift is necessary to secure the funding required for further AI development.
Musk, however, remains critical of the change and has been involved in legal battles with the company over the direction of its operations.
In August 2024, Musk sued Altman and others, claiming that the company had violated its original mission by prioritising profit over the public good.
Musk sought a preliminary injunction from a US district judge to prevent OpenAI from fully converting into a for-profit organisation.
The conflict between Musk and Altman highlights the increasingly competitive nature of the AI landscape, with both parties now pursuing rival AI projects through their respective ventures.
