Elon Musk, along with a group of investors, has made a $97.4 billion offer to acquire OpenAI’s assets, according to The New York Times.
In response, OpenAI CEO Sam Altman dismissed the bid with a sarcastic remark on X (formerly Twitter), stating, “No thank you but we will buy Twitter for $9.74 billion if you want.”
This move represents Musk’s latest challenge to OpenAI, a company he co-founded nearly a decade ago. The consortium behind the bid includes Vy Capital, Musk’s AI company xAI, Hollywood power broker Ari Emanuel, and other undisclosed investors. The Wall Street Journal had earlier reported on the offer.
However, OpenAI has not yet formally received Musk’s bid, according to a source familiar with the company’s stance. This unsolicited proposal could potentially interfere with OpenAI’s ongoing efforts to secure a $40 billion funding round, which would significantly boost its valuation.
The new funding, led by Japanese conglomerate SoftBank, is expected to push OpenAI’s valuation to $300 billion, placing it among the world’s most valuable private companies, alongside SpaceX and ByteDance, the parent company of TikTok.
Musk and Altman have been publicly at odds for some time. In August 2023, Musk sued OpenAI, accusing it of prioritizing profits over its original nonprofit mission of developing AI for the benefit of humanity. A U.S. federal judge recently ruled that parts of Musk’s lawsuit against OpenAI could go to trial, requiring Musk to testify in court, as reported by Al Jazeera.
Despite Musk’s previous involvement with OpenAI, he departed before the company gained prominence and later founded the competing AI firm xAI in 2023.
Adding to the tensions, former U.S. President Donald Trump recently announced a $500 billion AI infrastructure initiative called Stargate, in partnership with OpenAI, Oracle, and SoftBank. Musk criticized the initiative, claiming, “They don’t actually have the money.”
In response, Altman fired back, calling Musk “wrong” and inviting him to visit an AI development site in Texas. He also emphasized the importance of prioritizing national interests over corporate gains, stating, “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,” adding an American flag emoji.