Elon Musk and a consortium of investors have submitted a $97.4 billion bid to take control of OpenAI, just months after he filed a lawsuit against the artificial intelligence company.
Musk, who co-founded OpenAI in 2015 but left in 2018, has been vocal about his disapproval of the company’s shift toward a for-profit model. He argues that OpenAI has strayed from its original mission of open-source AI development.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated.
The bid, backed by Musk’s AI company xAI, does not target OpenAI’s entire operation but focuses on acquiring control of its non-profit arm. If successful, a merger between OpenAI and xAI could be on the horizon.
The offer has intensified tensions between Musk and OpenAI CEO Sam Altman, who rejected the bid with a sarcastic post on X: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Musk, who founded xAI after leaving OpenAI, has frequently clashed with Altman over the company’s direction. He previously sued OpenAI over its restructuring plans, later dropped the lawsuit, and then refiled it.
The bid is supported by several investment firms, including one led by Joe Lonsdale, co-founder of the government technology firm Palantir. Ari Emanuel, CEO of entertainment giant Endeavor, has also joined the consortium through his investment fund.
Musk’s legal representative, Alex Toberoff, told The Wall Street Journal that the group is prepared to match or exceed any competing bids for OpenAI.
Meanwhile, OpenAI maintains that restructuring is necessary to secure long-term financial sustainability and remain competitive in the rapidly evolving AI industry. The company has set 2026 as the target for completing its restructuring process.
