Elon Musk has made a $97.4 billion bid to acquire OpenAI’s nonprofit organization, intensifying tensions between Musk and OpenAI CEO Sam Altman. The bid was swiftly declined by Altman, who responded humorously on X (formerly Twitter), saying, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
Musk’s Opposition to OpenAI’s Direction
Musk co-founded OpenAI with Altman in 2015 as a nonprofit dedicated to AI research for public benefit. He later left the organization and launched xAI in 2023, becoming a vocal critic of OpenAI’s shift to a for-profit model. OpenAI argues that the shift was necessary to secure funding for advanced AI development.
Musk has taken legal action against OpenAI’s leadership, including a lawsuit in August 2024. He claims the company has deviated from its mission by prioritizing profit over public welfare. Musk previously sought a court injunction to halt OpenAI’s for-profit conversion, asserting that this move undermines its founding values.
Political and Industry Implications
Musk, a known ally of President Donald Trump, recently opposed a $500 billion AI initiative backed by the administration. His offer to acquire OpenAI’s nonprofit structure may add further complexity to AI governance, especially given Microsoft’s stake in OpenAI.
Musk’s consortium—comprising xAI, Baron Capital Group, and Emanuel Capital—has not issued any statements on the proposal. Industry experts believe this bid could have far-reaching implications, particularly as Microsoft plays a significant role in OpenAI’s operations.
Legal Experts Weigh In
Legal analysts suggest that Musk’s offer establishes a financial benchmark for OpenAI’s nonprofit assets. Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits, remarked that OpenAI may need to provide a rationale if it values its nonprofit operations at a lower level than Musk’s offer.
This development raises questions about corporate ethics and AI governance. Musk continues to advocate for a return to OpenAI’s original mission of transparency and open-source AI research, warning that profit-driven motives could compromise safety and accessibility in AI advancements.
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The Future of AI Power Dynamics
The outcome of Musk’s bid is poised to influence global AI industry dynamics. With generative AI rapidly evolving, this high-profile confrontation highlights the ongoing debate over balancing profit, innovation, and public interest in the tech sector. The industry will be watching closely to see how OpenAI and other key players respond to the increasing pressure for ethical and transparent AI development.
