Musk’s Offer Could Reshape AI Industry, but Altman Fires Back
Elon Musk is spearheading a $97.4 billion takeover bid for OpenAI, the parent company of ChatGPT, in what could be one of the most dramatic power moves in the artificial intelligence industry. The bid, first reported by the Wall Street Journal, would give Musk majority control over OpenAI and directly challenge CEO Sam Altman, with whom Musk has had a long-standing feud.
Musk, who co-founded OpenAI in 2015 but left the company in 2018, has frequently criticized Altman for shifting OpenAI toward a for-profit model, accusing the company of abandoning its original open-source and safety-first mission.
“If Sam Altman and the present OpenAI, Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it,” said Marc Toberoff, an attorney representing Musk’s group of investors. “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.”
Sam Altman wasted no time in dismissing Musk’s offer, responding with a sarcastic post on X (formerly Twitter):
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
The jab was a clear reference to Musk’s controversial $44 billion acquisition of Twitter, now known as X, and the platform’s financial struggles under his leadership.
Musk’s latest move follows a series of legal disputes with OpenAI, including a lawsuit in June 2024, in which he accused the company of straying from its non-profit roots. After OpenAI released emails showing Musk had previously supported revenue generation to fund AI development, he withdrew that lawsuit—only to file a new one in August 2024, alleging racketeering and reckless pursuit of artificial general intelligence (AGI) for profit.
The tension escalated after Altman’s dramatic ousting and reinstatement in late 2023, which saw OpenAI’s board reshuffled following concerns that the company was moving too quickly without sufficient safeguards.
Musk’s X.AI, an AI startup aimed at competing with OpenAI, stands to benefit if he gains control over his former company. Meanwhile, OpenAI’s deep partnerships with Microsoft and Thrive Capital have strengthened its market dominance, making a Musk takeover far from guaranteed.
The bid underscores a broader philosophical divide in AI development:
- Musk favors open-source AI development and warns against unchecked commercial AI expansion.
- Altman and OpenAI prioritize scaling AI while maintaining proprietary technology, arguing that large-scale investment is necessary to compete globally.
With OpenAI’s valuation hovering around $100 billion, Altman and OpenAI’s investors, including Microsoft, will ultimately determine whether Musk’s offer is entertained. Given the tense history between Musk and OpenAI, the bid is unlikely to proceed without a major fight.
As AI continues to shape the future, the Musk-Altman power struggle is set to define the industry’s next chapter—whether in courtrooms, boardrooms, or social media spats.