Elon Musk is planning to regain control of OpenAI as he leads a consortium that has made a staggering offer of $97.4 billion to purchase the author of the world's leading artificial intelligence technology. The bid comes barely several months after Musk sued OpenAI, seeking to block its transition into a for-profit company.
However, OpenAI Chief Executive Officer Sam Altman dismissed the offer pretty quickly, taking the fight between the two tech moguls to another level.
Sam Altman's Razor-Edged Reply to Musk's OpenAI Bid
For years, the rivalry between Musk and Altman has been simmering, but this latest move takes it to a whole new level. Responding to Musk's offer, Altman hit back on X (formerly Twitter) with this sharp retort:
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
According to Engadget, Altman's response was not just a rejection but a public jab at Musk, who famously purchased Twitter for $44 billion before rebranding it as X.
The billionaire feud signals that Altman won't easily be swayed by the SpaceX CEO's offer even though if it means billions of dollars.
Musk's Lawsuit Against OpenAI
Musk has been critical of the way OpenAI is run, especially when it unveiled a $500 billion plan called Stargate. The project focuses on furthering the development of AI.
He even slammed OpenAI's new AI model back in May 2024, saying that it "made him cringe."
However, Musk has expressed concerns regarding whether OpenAI and its investors have the financial capabilities to pull off such a large project.
At the time, he said that OpenAI should revert to being an "open-source, safety-focused force for good."
His complaint claims OpenAI was created as a nonprofit aimed at improving human life but has since been repurposed to serve the interests of profiteers. Musk, who founded OpenAI with Altman in 2015 but exited before it became an AI giant, has gone on to launch his own rival AI company, xAI.
Can Musk Raise Enough Funds?
Acquiring OpenAI would require a financial war chest of extraordinary scale. The company was valued at $157 billion in its latest funding round, making it one of the most valuable private entities in the world.
In January, reports surfaced that SoftBank Group was in talks to lead a $40 billion funding round that could push OpenAI's valuation to $300 billion.
As the richest person on earth, the challenge still remains in accumulating that amount. xAI is Musk's AI firm that would eventually merge with OpenAI in case of this successful acquisition.
According to a report by the Wall Street Journal, it was Musk who offered OpenAI this sum, thereby raising questions on how he plans to fund this acquisition.
What Does the Future Hold for OpenAI?
OpenAI is actively pursuing its transition into a for-profit structure to attract the capital necessary for continued AI advancements. The company argues that without this shift, it cannot remain competitive in the race to develop the world's most powerful AI models.
Meanwhile, Microsoft, one of OpenAI's largest backers has remained silent on Musk's bid. Given Microsoft's deep investments in OpenAI, any takeover attempt by Musk is likely to face resistance.
For now, Altman believes that AI will continue to grow, but its costs will fall by 10 times yearly.
