Elon Musk and his consortium have made a bold move. They have offered $97.4 billion to take over OpenAI, the company behind ChatGPT. This bid comes as OpenAI shifts from a nonprofit to a for-profit company. The move is set to fuel ongoing tensions between Musk and OpenAI’s CEO, Sam Altman.
Why Is Musk Making This Offer?
Musk co-founded OpenAI in 2015 as a nonprofit. He later left and launched his own AI startup, xAI, in 2023. Now, he wants OpenAI to return to its nonprofit roots.
He believes OpenAI has abandoned its original mission of developing AI for humanity’s benefit. Instead, he claims, it has prioritized profit. In a statement, Musk said, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
Sam Altman’s Response: A Resounding “No”
Altman quickly dismissed the offer. He posted on X (formerly Twitter): “No thank you but we will buy Twitter for $9.74 billion if you want.”
Internally, OpenAI’s board also rejected Musk’s bid. Altman assured employees that OpenAI is not for sale.
Who Else Is Involved?
Musk isn’t bidding alone. His consortium includes xAI, Baron Capital, Emanuel Capital, and other investors. Reports suggest that xAI may merge with OpenAI if the deal goes through.
However, OpenAI is already backed by Microsoft, which holds significant influence. It remains unclear how Microsoft will respond to Musk’s move.
The Bigger Picture: OpenAI’s Transition to For-Profit
OpenAI is shifting from a nonprofit model to a for-profit one. It argues that this change is necessary to fund cutting-edge AI research. However, critics, including Musk, worry that prioritizing profit over safety could have dangerous consequences.
Can Musk Afford This?
Funding this bid will be a challenge. Musk’s Tesla stock is worth about $165 billion, but much of it is tied up. He could sell shares, take a loan, or use his stake in SpaceX as collateral.
Meanwhile, OpenAI is valued at around $157 billion. Recent reports suggest SoftBank is considering a $40 billion investment that would raise OpenAI’s valuation to $300 billion.
What Happens Next?
Musk’s bid raises several key questions:
- Will OpenAI’s board be forced to reconsider?
- Can Musk secure enough funds to make this deal happen?
- How will Microsoft and other investors respond?
- Is Musk genuinely concerned about AI ethics, or is this a monopoly play?
For now, OpenAI remains firm in its rejection. But with billions at stake, the battle for control is far from over.
