Elon Musk Leads $97.4 Billion Bid to Take Over OpenAI

Elon Musk, alongside a consortium of investors, offered $97.4 billion on February 10, 2025, to acquire OpenAI. The bid aims to transform OpenAI, the nonprofit behind ChatGPT, into a for-profit entity under Musk’s leadership.

This unexpected move intensifies his rivalry with OpenAI’s CEO, Sam Altman, and signals Musk’s dissatisfaction with the organization’s current direction. Musk co-founded OpenAI in 2015 with Altman and others to promote open-source AI research for societal benefit.

He left the board in 2019 due to conflicts of interest with Tesla and SpaceX. After Musk’s departure, OpenAI shifted to a “capped-profit” model to attract funding from major investors like Microsoft.

Under Altman’s leadership, the company achieved groundbreaking success with ChatGPT and other AI advancements, boosting its valuation to over $157 billion by late 2024.

The billionaire’s proposal includes plans for a $500 billion investment in AI infrastructure through a joint venture called Stargate. This initiative would integrate Musk’s AI company, xAI, with OpenAI while addressing ethical concerns about AI safety and transparency.

Musk criticized OpenAI for abandoning its open-source roots and prioritizing profit over public good. He stated his commitment to restoring the organization’s original mission in a statement released through his lawyer, Marc Toberoff.

Altman and Musk Clash Over AI Vision

Altman rejected the offer on X (formerly Twitter), sarcastically suggesting he could buy the platform for $9.74 billion instead. Musk responded by calling Altman a “swindler,” escalating their public feud.

The two have clashed repeatedly over OpenAI’s direction, with Musk filing lawsuits accusing the organization of breaching its nonprofit commitments during its transition. OpenAI’s Stargate project has drawn significant attention.

It aims to build advanced data centers across the U.S. in collaboration with Microsoft, Oracle, and SoftBank. While proponents highlight its potential to secure U.S. leadership in AI development, Musk questioned its financial feasibility and criticized its backers’ funding capacity.

This high-stakes bid underscores competing visions for AI governance: Musk advocates open-source principles while Altman focuses on scaling innovation through private investment. The outcome could reshape the future of artificial intelligence and its global impact.