A consortium led by Elon Musk has submitted a $97.4 billion bid to acquire the non-profit that controls OpenAI. The bid aims to reverse the organization’s shift from its original non-profit mission to a structure designed to secure capital for AI research, a change that has drawn Musk’s criticism.
Sam Altman, OpenAI’s CEO, dismissed the proposal on X by tweeting, “No thank you, but we will buy Twitter for $9.74 billion if you want,” on Feb. 11, highlighting the differences in vision between him and Musk.
According to Reuters, the consortium includes Musk’s AI startup, xAI, and investment groups such as Baron Capital and Emanuel Capital. Musk, who co-founded OpenAI in 2015 before leaving amid disagreements over its direction, has argued that the organization should return to its founding commitment to open research and public benefit. Legal disputes have followed these concerns; Musk filed suit last year, alleging that current leadership had prioritized profit over the non-profit’s original goals. The bid could lead to a merger between the for-profit xAI and OpenAI’s governing body, altering the organization’s structure and strategy.
OpenAI has pursued investment to support its AI development. In its latest funding round, the organization was valued at $157 billion, with discussions underway to raise funds to increase its valuation to $300 billion. The planned transition to a for-profit structure is intended to secure the capital required to compete in the AI market. Analysts suggest that Musk’s bid could complicate these fundraising efforts by forcing the board to weigh financial benefits against the risk of diluting the organization’s core purpose.
Musk’s financial strategy in the bid reportedly includes leveraging his stake in Tesla, valued at $165 billion. This stake could be collateral for financing the offer, even as recent financial moves following his acquisition of X have reportedly limited available liquidity. Industry observers note that the consortium’s backing, which includes several investment firms, may provide financial strength to the proposal.
Despite Altman’s public rejection, OpenAI’s board will likely still review the offer. The board’s deliberations will address challenges posed by the shifting competitive landscape in AI, the possibility of a merger with xAI, and the implications of accepting a bid from a figure who has consistently opposed the organization’s current trajectory.
Currently leading the Department of Government Efficiency, Musk’s record of corporate takeovers is marked by contentious boardroom battles and legal maneuvers. Although he is often perceived as a founder of Tesla, his role began as a key investor before he leveraged his influence to displace the company’s original leadership.
His acquisition of Twitter and confrontations with OpenAI’s management illustrate a consistent strategy of using financial leverage and litigation to assert control. These actions have sparked debate over governance practices and the concentration of power in major tech ventures.
His current bid for OpenAI now echoes this pattern, underlining a legacy marked by aggressive, often controversial, acquisition tactics. It is unclear how the non-profit aspect of OpenAI would work in tandem with his for-profit xAI, a key competitor of OpenAI as a commercial entity.
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