Altman vs. Musk: The $97 Billion Standoff Over AI Takeover Bid

This month, multiple reports, including from the BBC, Sky News, and Silicon Republic, detailed Elon Musk’s latest move in his ongoing battle with OpenAI: a $97.4 billion bid to acquire the company. The bid, which Musk’s attorney confirmed was submitted to OpenAI’s board, was met with a swift and cutting response from CEO Sam Altman, who posted on X: "no thank you but we will buy Twitter for $9.74 billion if you want."

The bid—backed by Musk’s AI venture, xAI, alongside private equity firms like Baron Capital and Valor Management—marks a dramatic escalation in the long-running feud between Musk and OpenAI. Their rift began in 2018 when Musk left OpenAI’s board, citing concerns over the company’s direction. Since then, he has repeatedly criticized OpenAI’s shift from its original nonprofit mission to a for-profit model, arguing that it has become a "closed-source de facto subsidiary of Microsoft."

Musk framed his bid as a way to bring OpenAI back to its original purpose: "It's time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens." However, skeptics, including tech investor Christie Pitts, question his true motivations, noting that Musk’s own AI company, xAI, operates as a for-profit entity.

A Bid With a History

Musk’s legal battles with OpenAI have been ongoing. In early 2024, he sued the company, alleging that it had abandoned its foundational mission of developing AI for humanity’s benefit. OpenAI countered with claims that Musk had previously advocated for a for-profit model himself and even proposed integrating OpenAI into Tesla as its "cash cow." Though Musk dropped that lawsuit, he recently attempted to block OpenAI’s shift to a for-profit entity. A California federal judge has allowed that case to proceed to trial, but dismissed Musk’s claim that OpenAI’s restructuring would cause "irreparable harm."

Beyond the legal disputes, OpenAI has been forging ahead with ambitious plans. The company is collaborating with Oracle, SoftBank, and the UAE-backed G42 group to build Stargate, a $500 billion AI infrastructure project, which President Trump called "the largest AI infrastructure project by far in history." Musk has publicly questioned whether Stargate’s backers actually have the money to follow through, though he has offered no proof to support that claim.

The OpenAI Board’s Dilemma

Despite Altman’s dismissive response, OpenAI’s board has a fiduciary responsibility to consider any serious acquisition offer. Some analysts suggest that Musk’s bid, while below OpenAI’s latest $157 billion valuation, could pressure the company into greater transparency around its transition to a for-profit model. The board is also navigating regulatory scrutiny over its close relationship with Microsoft, which has invested billions into OpenAI.

The bid also carries echoes of Musk’s 2022 acquisition of Twitter (now X), which followed a similarly chaotic and highly publicized back-and-forth. At the time, Musk initially attempted to back out of the deal before ultimately completing the $44 billion purchase. Given this history, it’s unclear whether Musk’s bid for OpenAI is a serious play or a strategic move to disrupt OpenAI’s operations.

What Comes Next?

Whether or not Musk’s offer leads to a sale, it underscores the broader debate over OpenAI’s future. Should OpenAI return to its nonprofit roots, or is the for-profit model necessary to fund cutting-edge AI research? As the company pushes forward with projects like Stargate and continues expanding its AI capabilities, these questions will only grow more pressing.

For now, Altman’s message is clear: OpenAI isn’t interested in selling. But in the world of high-stakes AI competition, the saga between Musk and OpenAI is far from over.

References

• Jenny Darmondy (2025, 11-Feb). Elon Musk-led group makes $97bn bid for OpenAI. Silicon Republic. Available online. Accessed 11 February 2025.
• Michael Race (2025, 10-Feb). ChatGPT boss says no thanks to Elon Musk-led $97bn bid. BBC News. Available online. Accessed 11 February 2025.
• Sky News (2025, 11-Feb). Elon Musk launches $97bn bid to buy ChatGPT-maker OpenAI. Available online. Accessed 11 February 2025.