In a dramatic escalation of the ongoing rivalry between Elon Musk and OpenAI CEO Sam Altman, Musk has made a stunning $97.4 billion hostile bid to take control of OpenAI. The move, which was swiftly rejected by Altman, signals a deepening battle over the future of artificial intelligence and the governance of one of the industry’s most influential companies.
The Origins of the Feud
Musk, a co-founder of OpenAI, has long expressed dissatisfaction with its evolution from a nonprofit artificial intelligence research lab into a for-profit entity. Over the years, he has accused Altman of deviating from OpenAI’s original mission and prioritizing financial interests over responsible AI development. His latest bid appears to be not just a financial play but a strategic maneuver to undermine Altman’s leadership.
READ MORE: The Impact of Trump’s Tariffs on the UK Steel Industry and Global Markets
Altman, currently in Paris for an AI summit, dismissed the offer in a sharp post on X (formerly Twitter), stating, “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk retorted with a single-word reply: “Swindler.”
A Complicated Offer
Musk’s bid places OpenAI in a difficult position. The company is in the process of securing a $40 billion investment from SoftBank, which would push its valuation to $300 billion. Additionally, Altman is working to transition OpenAI’s nonprofit structure into a for-profit entity, a process requiring substantial compensation to its nonprofit division. Musk’s public offer effectively sets a minimum price for OpenAI’s nonprofit arm, adding pressure to any restructuring negotiations.
Boardroom Tensions
The decision-making power in this dispute largely rests with OpenAI’s board, led by Bret Taylor, who previously clashed with Musk during his tumultuous takeover of Twitter. Board members, including former Treasury Secretary Larry Summers, must now navigate the complex legal and fiduciary obligations of balancing nonprofit responsibilities with the interests of investors.
Legal experts suggest that Musk’s bid, even if unlikely to succeed, could complicate OpenAI’s regulatory standing. “If this is a legitimate bid, it establishes a benchmark value for OpenAI’s assets,” said Samuel Brunson, an associate dean at Loyola University Chicago School of Law. “That could pose regulatory challenges for Altman’s planned restructuring.”
Musk’s Next Move
Despite the bold offer, questions remain about Musk’s ability to fund the deal. His wealth is largely tied to Tesla stock, and any significant cash commitment would likely require external financing. Musk’s AI venture, xAI, has been valued at up to $40 billion, but whether he can marshal the necessary resources remains uncertain.
Meanwhile, Altman has continued to take jabs at Musk. Speaking on Bloomberg Television, he suggested that Musk’s motivations stem from personal insecurity, stating, “I don’t think he’s a happy guy. I feel for him.”
The Bigger Picture
This latest power play underscores the increasingly high-stakes nature of the AI industry, where control over leading companies like OpenAI carries profound implications for technology, business, and global policy. As regulators and investors watch closely, Musk’s bid—successful or not—has already reshaped the landscape of AI leadership.
For now, OpenAI remains under Altman’s control, but the battle is far from over.
