Elon Musk Leads $97.4 Billion Bid for OpenAI, Sam Altman Responds with Offer to Buy Twitter
Washington, D.C.: In a bold move, Tesla and SpaceX CEO Elon Musk has led a consortium of investors in a $97.4 billion bid to acquire OpenAI, the artificial intelligence powerhouse he helped co-found nearly a decade ago, The New York Times reported.
In response, OpenAI CEO Sam Altman dismissed the offer with a sarcastic remark on X (formerly Twitter), saying, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Musk’s High-Stakes Challenge to OpenAI
The bid marks Musk’s latest challenge to OpenAI, an organization he initially helped establish in 2015 before parting ways. The investment group backing Musk’s offer includes Vy Capital, xAI (Musk’s AI startup), Hollywood mogul Ari Emanuel, and other high-profile investors, according to sources familiar with the matter.
The Wall Street Journal was the first to report news of the offer. Meanwhile, OpenAI has yet to review Musk’s proposal, as per a source cited by The New York Times.
This unexpected bid comes at a crucial time when OpenAI is negotiating a $40 billion funding round led by Japanese conglomerate SoftBank. If successful, this deal would catapult OpenAI’s valuation to $300 billion, making it one of the world’s most valuable private companies, alongside Musk’s SpaceX and TikTok’s parent company, ByteDance.
Musk vs. Altman: A Long-Standing Rivalry
Musk and Altman have had a rocky relationship over the years, with tensions escalating further after Musk sued OpenAI last year, accusing the company of prioritizing profits over its original nonprofit mission of making AI advancements beneficial to all of humanity.
A U.S. federal judge recently ruled that portions of Musk’s lawsuit against OpenAI could proceed to trial, requiring him to testify in court, according to Al Jazeera.
After parting ways with OpenAI, Musk founded his own AI startup, xAI, in 2023, directly competing with Altman’s company. The rivalry has played out in both business strategy and social media spats between the two tech moguls.
The Trump Factor and AI Investment Battle
The feud intensified when former U.S. President Donald Trump announced a $500 billion AI infrastructure investment plan, named Stargate, in partnership with OpenAI, Oracle, and SoftBank.
Musk criticized the initiative, claiming the companies involved “don’t actually have the money.” Altman quickly countered, calling Musk “wrong” and invited him to visit an AI development site in Texas.
In a pointed remark, Altman also addressed Musk’s recent political stance, saying, “This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role, I hope you’ll mostly put [America] first.” He ended his message with an American flag emoji, further fueling the heated exchange.
What’s Next?
As OpenAI continues negotiating its $40 billion funding round, Musk’s surprise bid adds an unexpected layer of uncertainty and drama to the AI industry’s power struggle. Whether Musk’s offer will be seriously considered remains to be seen, but the battle for AI dominance between him and Altman is far from over.
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