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Elon Musk is making headlines once again with an ambitious bid to gain control of OpenAI, the groundbreaking AI company he co-founded in 2015. This move marks a new chapter in his ongoing feud with OpenAI’s CEO, Sam Altman, and adds a fresh layer to the rivalry surrounding the future of artificial intelligence (AI). Here’s an in-depth look at the situation, from the initial offer to Musk’s ongoing efforts in the AI space.
The $97.4 Billion Offer: Musk’s Investment Group Takes Aim at OpenAI
On February 10, 2025, the Wall Street Journal reported that Elon Musk was leading an investment group with an offer to buy OpenAI’s controlling stake for an eye-watering $97.4 billion. This unprecedented bid is not just about acquiring a controlling interest in the company, but it also signals Musk’s ongoing battle for influence over AI technology, which he sees as shaping the future.
Who is Behind the Offer?
Musk’s attorney, Marc Toberoff, was reportedly the one who submitted the bid to OpenAI’s board of directors. This group includes several high-profile figures who are eager to shape the future of AI in their vision, and Musk is no stranger to making bold business moves. The offer stands as one of the largest bids for a technology company in recent history.
OpenAI’s Response: Sam Altman’s Retort
In a typical move to counter the offer, OpenAI CEO Sam Altman used social media to respond to Musk’s proposal. In a post on X (formerly known as Twitter), Altman humorously countered by offering to buy Musk’s social media platform for just $9.74 billion, a fraction of the $44 billion Musk spent to acquire it in 2022. This cheeky remark, clearly designed to downplay Musk’s intentions, underscores the tension between the two men.
| Action | Party Involved | Response |
|---|---|---|
| Investment Group Bid | Elon Musk’s Team | $97.4 billion offer to control OpenAI |
| CEO Response | Sam Altman | Counteroffer to buy X for $9.74 billion |
Musk’s Feud with OpenAI: A Long-standing Rivalry
Musk and Altman’s relationship is complicated. While Musk was a co-founder of OpenAI, he left the company in 2018. Since then, Musk has made several public statements about OpenAI, often questioning its motives and direction. His new attempt to take control of OpenAI could be seen as a culmination of their ongoing feud, which has grown more bitter with time.
Musk’s Legal Battle with OpenAI
Musk has not shied away from the legal arena when it comes to his disputes with OpenAI. He has filed several lawsuits against the company, which only adds to the drama surrounding this new offer. This legal tension suggests that Musk’s ultimate goal might not be just to own OpenAI, but to take back control of the direction of the technology he helped create.
OpenAI’s Unique Structure: Non-Profit Meets For-Profit
OpenAI operates under a unique structure that blends the non-profit and for-profit models. In December 2023, OpenAI announced plans to become a Delaware Public Benefit Corporation, which would balance the interests of shareholders, employees, and the public. This change was aimed at enabling the company to continue to develop cutting-edge AI technologies while addressing the financial challenges associated with the high costs of research and development.
| OpenAI Structure | Model | Objective |
|---|---|---|
| Non-profit Control | Non-profit organization with a for-profit entity | Balancing public and investor interests |
| Shift to Public Benefit Corp | Public Benefit Corporation in Delaware | To navigate AI’s challenges while ensuring responsible AI use |
This shift to a hybrid model represents a significant step in the evolution of OpenAI and is part of the reason Musk might feel compelled to regain control. The organization’s immense influence and its high valuation make it a key player in the AI landscape.
Musk’s AI Venture: xAI
While Musk’s involvement with OpenAI has been fraught with tension, he has taken steps to establish his own presence in the AI space. In early 2023, Musk launched xAI, a generative AI startup designed to compete directly with OpenAI. This move demonstrated Musk’s intent to carve out a stake in AI, which he views as critical to future technological developments.
xAI’s mission is to develop AI systems that align with Musk’s vision of technology—often promoting more transparency and control. Musk has repeatedly pointed out that AI should be developed with care, emphasizing the need for caution in its advancement.
OpenAI’s Role in Shaping the Future of AI
OpenAI is currently one of the world’s most highly valued AI startups, and its products, such as the language model GPT (which powers ChatGPT), have made waves in both consumer and enterprise spaces. However, OpenAI also faces significant financial challenges due to the immense costs of training and operating its AI models.
Despite the financial difficulties, OpenAI has attracted large investments from organizations such as Microsoft. These partnerships have helped fund OpenAI’s research and ensure its continued dominance in the AI field.
Elon Musk’s Influence on the AI Landscape
Musk’s influence in the world of AI cannot be understated. He is not just an entrepreneur but a vocal advocate for AI that serves humanity’s best interests. Musk has long warned of the potential dangers of uncontrolled AI, arguing that without proper regulation and oversight, AI could be used to manipulate and harm society.
Musk’s recent investment efforts, both with xAI and his bid for OpenAI, reflect his desire to be at the helm of AI’s development. However, his contentious relationship with OpenAI’s leadership suggests that his vision for AI may not align with that of the current company leadership.
The Future of AI: Competing Visions
The AI industry is at a crossroads. Major tech players like OpenAI, Musk’s xAI, and other leading firms are racing to develop the next generation of artificial intelligence. However, each company has its own vision for the future of AI, ranging from complete openness and transparency to more tightly controlled development.
Musk’s focus on creating AI with safeguards to prevent harm contrasts with OpenAI’s current direction. This ideological divide has the potential to reshape the AI industry in profound ways, influencing both technological advancements and regulatory frameworks.
The Role of Other Investors: SoftBank and Oracle
While Musk’s investment group competes for control of OpenAI, other major players are also investing heavily in AI infrastructure. In January 2025, former U.S. President Donald Trump announced a joint venture with SoftBank and Oracle to invest over $500 billion in AI infrastructure. This investment is set to shape the future of AI development in the U.S., and Musk has expressed skepticism about the true scale of the project.
| Investor | Investment Amount | Company Involved |
|---|---|---|
| Musk’s Group | $97.4 Billion Offer | OpenAI |
| Trump, SoftBank, Oracle | $500 Billion Investment | AI Infrastructure in the U.S. |
Conclusion: The Battle for AI’s Future
Elon Musk’s $97.4 billion bid to take control of OpenAI adds another chapter to his complex relationship with the company. His ongoing rivalry with CEO Sam Altman, coupled with his ambitious goals in AI, promises to keep the tech world on edge. Whether Musk succeeds in gaining control of OpenAI or continues to build his own AI empire with xAI, one thing is certain: the future of AI will be shaped by intense competition and differing visions for how this transformative technology should be developed.
