Elon Musk, CEO of Tesla and SpaceX, has led a group of investors in making a $97.4 billion bid to acquire the assets of OpenAI, according to The New York Times. In response, OpenAI CEO Sam Altman humorously rejected the offer on X (formerly Twitter), quipping, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
This latest move marks Musk’s continued challenge to OpenAI, an organization he co-founded nearly a decade ago. The consortium behind the bid includes Musk’s AI company, Xai, the venture firm Vy Capital, Hollywood powerbroker Ari Emanuel, and other investors who spoke on condition of anonymity due to the ongoing negotiations. The Wall Street Journal was the first to report on the bid.
The New York Times reported that OpenAI had not yet reviewed Musk’s unsolicited offer. This move could potentially disrupt the company’s efforts to close a $40 billion funding deal, which would significantly boost its valuation from just a few months ago. That deal, led by Japanese conglomerate SoftBank, is expected to value OpenAI at $300 billion, according to sources familiar with the situation.
If the SoftBank-led funding round is completed, OpenAI could join the ranks of the most valuable private companies in the world, alongside Musk’s SpaceX and ByteDance, the parent company of TikTok, according to The New York Times.
Musk and Altman have been at odds for some time. Last August, Musk filed a lawsuit accusing OpenAI of abandoning its nonprofit mission to prioritize profits, claiming it was no longer focused on advancing AI for the benefit of all humanity. This month, a U.S. federal judge ruled that parts of Musk’s lawsuit against OpenAI could go to trial, with Musk being required to testify in court, as reported by Al Jazeera.
Though Musk co-founded OpenAI with Altman in 2015, he left the company before it gained significant traction and went on to establish his own AI startup, xAI, in 2023. The two tech moguls have been engaged in public disputes, particularly over the direction of AI development.
In another high-profile development, former President Donald Trump announced the launch of a joint venture called Stargate, aiming to invest around $500 billion in AI infrastructure through a partnership between OpenAI, Oracle, and SoftBank. Musk criticized the announcement, suggesting that the funding was not real. Altman, in turn, responded to Musk by calling him “wrong” and inviting him to visit an AI development site in Texas. He also expressed his support for Trump’s initiative, adding, “This is great for the country. I realize that what’s great for the country isn’t always optimal for your companies, but in your new role, I hope you’ll mostly put America first.”
The ongoing tensions between Musk and Altman highlight the competitive and sometimes contentious landscape of AI development, with both leaders positioning themselves at the forefront of the rapidly evolving industry.