A group of investors, led by billionaire entrepreneur Elon Musk, has formally submitted a $97.4 billion offer to acquire control of OpenAI, according to a report by The Wall Street Journal (WSJ) on Monday.
The proposal, which was officially presented to OpenAI’s board of directors, was confirmed by Musk’s attorney, Marc Toberoff. If accepted, the move could drastically reshape OpenAI’s trajectory, posing a direct challenge to CEO Sam Altman’s plans for the company’s future.
Potential Disruption to OpenAI’s Expansion Plans
OpenAI, initially established as a nonprofit in 2015, has undergone a major transformation under Altman’s leadership. His current strategy involves transitioning OpenAI into a for-profit entity, with ambitious plans to invest $500 billion into AI infrastructure through the Stargate project—an initiative aimed at building cutting-edge AI supercomputers.
Musk, however, has been a vocal critic of OpenAI’s commercial shift. In a statement relayed by Toberoff, Musk emphasized the need to restore OpenAI’s original mission:
“It’s time for OpenAI to return to its roots as an open-source, safety-driven organization focused on the greater good. We will ensure that happens.”
Musk’s Government Role and Broader AI Interests
Beyond his role as CEO of Tesla and SpaceX, Musk is currently serving as the head of the U.S. Department of Government Efficiency (DOGE), a task force dedicated to reducing federal waste and streamlining operations. His involvement in AI extends further through xAI, his independent AI company, which has developed Grok, a chatbot integrated into X (formerly Twitter).
Industry analysts speculate that if Musk gains control of OpenAI, he may integrate its technology with xAI, pushing for more transparency and a shift away from the closed-source commercial model that OpenAI has adopted in recent years.
Altman’s Response and History with Musk
Altman, who co-founded OpenAI with Musk, responded to the takeover bid in a playful yet pointed remark on X (formerly Twitter):
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
The remark highlights the ongoing tension between the two tech leaders, particularly since Musk left OpenAI in 2019 over disagreements about the company’s direction. Following his departure, Altman steered OpenAI toward a for-profit model, securing major investments from Microsoft and other tech giants.
What’s Next?
Musk’s takeover bid is expected to spark intense discussions among OpenAI’s board, investors, and regulatory bodies. If successful, it could lead to significant shifts in AI development, potentially affecting Microsoft’s multi-billion-dollar partnership with OpenAI and reshaping the competitive landscape of artificial intelligence.
As the AI sector rapidly evolves, this latest development marks a critical moment in the battle over the future of artificial intelligence governance and commercialization.
