A group of investors led by Elon Musk has made a $97.4 billion bid to acquire the nonprofit entity that controls OpenAI, escalating a long-running power struggle between Musk and OpenAI CEO Sam Altman over the future of artificial intelligence.
The consortium includes Musk’s AI firm xAI, investment firm Vy Capital, and Hollywood power broker Ari Emanuel, according to sources familiar with the offer.
The bid, first reported by The Wall Street Journal, marks Musk’s latest and most aggressive attempt to take control of OpenAI, a company he helped found in 2015 but left in 2018 after a dispute over its direction. The offer, however, faces significant challenges, as OpenAI’s board is closely aligned with Altman, who swiftly dismissed Musk’s proposal.
“No thank you but we will buy Twitter for $9.74 billion if you want,” Altman posted on X, the platform owned by Musk. In response, Musk replied with a single word: “Swindler.”
The bid could complicate OpenAI’s efforts to secure a $40 billion funding round led by Japanese conglomerate SoftBank, which values the company at $300 billion—making it one of the world’s most valuable private firms alongside SpaceX and ByteDance, the parent company of TikTok. SoftBank is reportedly willing to invest up to $40 billion, with other investors providing the remainder.
Musk’s unsolicited offer comes amid a legal battle he launched against OpenAI, alleging the company has strayed from its nonprofit mission. His attorney, Marc Toberoff, argued that if OpenAI intends to shift fully into a for-profit entity, the nonprofit should be fairly compensated for relinquishing control over “the most transformative technology of our time.”
The nonprofit entity at the center of Musk’s bid has only two employees and approximately $22 million in assets. However, it holds legal control over OpenAI, which is why Musk and his investors are offering billions to acquire it. Legal experts note that the board has a fiduciary duty to sell its assets at fair market value, and Musk’s bid now sets a high benchmark.
Ellen Aprill, a nonprofit law scholar at UCLA, noted that OpenAI’s leadership may face scrutiny if they reject a significantly higher bid in favor of a lower offer from the for-profit arm. “It’s an enormous complication for the current plan,” she said.
Musk’s offer could further delay OpenAI’s transition to a fully for-profit model, which Altman and his allies have been working toward since his dramatic reinstatement as CEO in late 2023. The proposed structural changes are already under review by charity regulators in Delaware, where OpenAI is incorporated, and California, where it is headquartered.
Musk, now a key adviser to President Donald Trump, has also been locked in a broader competition with Altman, launching his own AI company, xAI, in 2023. Despite his efforts, OpenAI has maintained a dominant position in the AI race, aided by political and corporate alliances.
Just a day after Trump’s inauguration for his second term, the former president endorsed a $100 billion AI infrastructure plan backed by OpenAI, SoftBank, and Oracle. Meanwhile, Altman, attending an AI conference in Paris alongside French President Emmanuel Macron and US Vice President JD Vance, has continued to consolidate his influence on the global AI stage.
As Musk pushes forward with his bid, OpenAI’s board must now weigh its legal obligations against its strategic goals, setting the stage for a high-stakes showdown over the future of artificial intelligence.
