Musk's takeover bid for OpenAI rejected by Altman

Tuesday 11 February 2025 - 10:10

Elon Musk has spearheaded an investment group proposing a $97.4 billion acquisition of the nonprofit overseeing OpenAI, escalating his ongoing conflict with the ChatGPT developer. The offer was disclosed in a recent report.

Attorney Marc Toberoff, representing Musk, submitted the bid to OpenAI's board of directors. However, OpenAI CEO Sam Altman responded dismissively, humorously suggesting an alternative purchase of another social media platform for $9.74 billion. Musk replied with a terse "Swindler."

Musk has been embroiled in legal battles with OpenAI, an organization he co-founded in 2015 but left in 2018. Since then, OpenAI has become a dominant force in artificial intelligence, while Musk launched xAI in 2023 to compete in the rapidly evolving sector.

OpenAI has recently announced a transition to a Public Benefit Corporation model, aiming to balance shareholder and public interests while maintaining its nonprofit oversight structure. Meanwhile, Musk remains critical of the company’s direction and financial sustainability.

Additionally, OpenAI has joined a major AI infrastructure investment initiative, backed by prominent tech leaders. However, Musk has cast doubts on the viability of the project, marking a rare instance of divergence between him and key political figures, despite his significant financial contributions to recent electoral campaigns.