Elon Musk and a group of investors have submitted a $97.4 billion bid to acquire OpenAI, aiming to restore its nonprofit mission. Musk’s attorney, Marc Toberoff, confirmed that the offer for "all assets" was submitted to OpenAI’s board on Monday.
The bid marks the latest development in Musk’s ongoing rivalry with OpenAI CEO Sam Altman over the company's future. In response, Altman dismissed the offer on Musk’s platform X, jokingly suggesting, “no thank you but we will buy Twitter for $9.74 billion if you want.”
Musk co-founded OpenAI in 2015 as a nonprofit alongside Altman but left in 2018 due to leadership conflicts. Since then, OpenAI has transitioned into a for-profit entity, a move Musk criticizes as abandoning its original mission. OpenAI argues the change is necessary to secure funding for AI advancements.
Musk’s bid is backed by his AI startup xAI, along with private equity firms like Baron Capital Group and Valor Management. Musk stated his intention to return OpenAI to an "open-source, safety-focused force for good."
The offer is significantly lower than OpenAI’s $157 billion valuation from October and far below the $300 billion it is currently estimated to be worth. However, Toberoff indicated the consortium is willing to match or exceed higher offers.
Meanwhile, OpenAI has partnered with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund on a $500 billion AI infrastructure project in the U.S., announced by President Trump. Musk, despite advising Trump, has questioned the project's financial backing.
