Elon Musk Leads $97.4 Billion Bid for OpenAI Amid Growing AI Power Struggle
Billionaire entrepreneur Elon Musk has made a bold move in the artificial intelligence industry, leading an investment group in a $97.4 billion offer to acquire the nonprofit entity overseeing OpenAI. This bid, revealed by The Wall Street Journal, marks a significant escalation in Musk’s ongoing rivalry with the ChatGPT-maker. The offer was formally submitted to OpenAI’s board of directors by Musk’s legal team, led by attorney Marc Toberoff.
This development highlights Musk’s increasing dissatisfaction with OpenAI’s leadership, particularly under CEO Sam Altman. Over the years, Musk has expressed concerns about AI ethics, corporate transparency, and governance, positioning himself as a vocal critic of OpenAI’s strategic direction.
Altman’s Sarcastic Rejection Sparks Social Media Clash
Shortly after news of the bid surfaced, Sam Altman appeared to dismiss Musk’s proposal with a sarcastic remark on X (formerly Twitter). Altman wrote:
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
Musk, who purchased Twitter in 2022 for $44 billion and later rebranded it as X, fired back with a one-word response:
“Swindler.”
This exchange underscores the deepening feud between the two tech leaders. Musk co-founded OpenAI in 2015 but left in 2018 due to disagreements over its direction. Since then, OpenAI has emerged as a dominant force in generative AI, spearheading advancements with ChatGPT and other AI models.
Musk’s Disputes with OpenAI and Its Business Shift
Musk’s growing frustration with OpenAI has been evident through his legal actions and outspoken criticism. His primary grievance stems from the company’s transition from a nonprofit AI research lab to a for-profit entity. In response, Musk launched his own AI venture, xAI, in 2023, aiming to compete with OpenAI while prioritizing transparency and ethical AI development.
In December 2023, OpenAI formally restructured itself as a Delaware Public Benefit Corporation, balancing the interests of investors, employees, and public welfare. The company explained in a blog post:
“We created a bespoke structure: a for-profit, controlled by the nonprofit, with a capped profit share for investors and employees.”
Despite these assurances, Musk remains skeptical of OpenAI’s corporate alliances and financial strategies, particularly its growing partnerships with major technology firms.
Political and Financial Influence in the AI Sector
Beyond Musk’s bid, OpenAI continues to attract significant political and financial backing. In January 2025, former U.S. President Donald Trump announced a $500 billion AI infrastructure initiative, known as Stargate, with funding from SoftBank, Oracle, and OpenAI.
The White House event unveiling the initiative featured key figures, including OpenAI’s Sam Altman, SoftBank’s Masayoshi Son, and Oracle’s Larry Ellison. The project was pitched as a pivotal step in securing U.S. dominance in AI development.
However, Musk quickly criticized the initiative, questioning the feasibility of its massive investment figures. His skepticism was unexpected, given his prior financial support for Trump’s 2024 election campaign, to which he reportedly contributed $270 million. The disagreement hints at Musk’s increasingly independent stance on AI governance and technological advancement.
Musk’s Growing Influence in AI and Future Battles
Musk’s $97.4 billion bid for OpenAI highlights the intensifying competition in the AI sector. As global investment in artificial intelligence surges, Musk is positioning xAI as a formidable challenger to OpenAI, Google DeepMind, and Anthropic.
xAI has been actively developing generative AI models, with Musk aiming to redefine AI’s future by emphasizing safety, transparency, and ethical considerations. His continued legal battles, aggressive investment strategies, and critiques of existing AI institutions suggest he will remain a central figure in the industry’s evolution.
Although OpenAI has rejected Musk’s acquisition attempt, the dispute between Musk and Altman is far from over. The coming months will reveal whether Musk escalates his legal confrontations with OpenAI or shifts his focus to expanding xAI’s market influence. Regardless of the outcome, his involvement in AI development will continue to shape the industry’s trajectory.
