Washington: In a significant development in the artificial intelligence industry, Elon Musk, the CEO of Tesla and SpaceX, is leading a consortium of investors in a staggering $97.4 billion bid to acquire OpenAI. This move, first reported by The New York Times, marks Musk’s latest effort to regain influence over the AI company he co-founded in 2015 but later departed from.
Musk’s Strategic Bid
The offer, backed by Musk’s AI venture xAI and major investors such as Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and Hollywood power broker Ari Emanuel, aims to bring OpenAI back to its original mission of open-source, safety-focused AI research. The Wall Street Journal first broke the news, indicating that the bid was formally presented to OpenAI’s board on February 10, 2025.
However, OpenAI has not yet reviewed Musk’s proposal, according to insider sources. The company, led by CEO Sam Altman, is currently focused on raising a $40 billion funding package, spearheaded by Japanese investment giant SoftBank, that would value OpenAI at approximately $300 billion.
Sam Altman’s Response
In response to Musk’s unsolicited bid, OpenAI CEO Sam Altman took to X (formerly Twitter), posting a tongue-in-cheek reply: “No thank you, but we will buy Twitter for $9.74 billion if you want.” This remark underscores the ongoing rivalry between Musk and Altman, who have clashed publicly over the direction and ethics of AI development.
A Long-Standing Feud
Musk and Altman’s relationship has been strained for years. Musk left OpenAI in 2018 and later founded xAI, positioning it as a competitor in the artificial intelligence space. In August 2024, Musk sued OpenAI, accusing the company of prioritizing profit over its original nonprofit mission. The lawsuit, which seeks to prevent OpenAI’s transition into a fully commercial entity, is still ongoing, with a U.S. federal judge recently ruling that Musk’s case could proceed to trial.
AI Industry at a Crossroads
Musk’s acquisition attempt comes at a crucial moment for OpenAI, which has been in negotiations to expand its funding and valuation. If Musk’s bid is successful, OpenAI would join SpaceX and ByteDance (TikTok’s parent company) as one of the world’s most valuable privately held firms.
Meanwhile, former U.S. President Donald Trump’s administration recently announced Stargate, a $500 billion joint AI infrastructure project involving OpenAI, Oracle, and SoftBank. Musk criticized the initiative, questioning its financial viability. Altman, in turn, defended the project, emphasizing its potential benefits for national security and AI advancement.
As the AI race intensifies, Musk’s bold bid for OpenAI could reshape the industry’s future, determining whether the company remains independent or falls under the leadership of its outspoken co-founder once again.
