Elon Musk has made a bold move in the AI industry by making a $97.4 billion bid to acquire OpenAI's non-profit entity. This unusual bid, first reported by The Wall Street Journal, aims to take control of the organization Musk co-founded in 2015 but left in 2018 due to disagreements over its direction.
The bid, backed by Musk's AI business xAI, investment giant Vy Capital, and Hollywood powerhouse Ari Emanuel, significantly raises the stakes in the ongoing power struggle between Musk and OpenAI CEO Sam Altman.
Altman quickly rejected the idea with a witty answer on X: "No, thank you, but we will buy Twitter for $9.74 billion if you want." Musk, in typical flair, shot back with a one-word reply: "Swindler."
The offer comes at an important time for OpenAI, which is amid raising funding of $40 billion at a staggering $300 billion valuation, with SoftBank among the key investors. Musk's offer doesn't only complicate the process, but it also raises legal and ethical questions about the governance of OpenAI's non-profit arm. Despite having only two employees and around $22 million in assets, the company maintains legal authority of OpenAI, making it a target in Musk's takeover attempt.
Musk's legal team argues that if OpenAI is shifting to a for-profit model, the company should be fairly compensated for relinquishing control over what Musk calls "the most transformative technology of our time." Legal experts suggest that the board has a fiduciary duty to take Musk's high offer seriously or risk facing scrutiny for rejecting a financially superior proposal.
This debate is more than just simply corporate control—it's about the future of AI. OpenAI has long been criticized by Musk for deviating from its main goal of producing safe, open-source AI. Meanwhile, Altman's power grows as he secures governmental and corporate backing for his ambitious AI projects, including a $100 billion AI infrastructure effort supported by President Trump.
As OpenAI's Ward considers its next move, Musk's bid has set the stage for a high-stakes showdown that could transform the AI landscape for years to come.