Michelle ThompsonA group of investors led by Elon Musk has made a $97.4 billion offer to acquire OpenAI, the company behind ChatGPT.
Musk’s attorney, Marc Toberoff, confirmed that the proposal, covering “all assets” of OpenAI, was submitted to the board on Monday.
The bid marks the latest development in an ongoing conflict between Musk, a key advisor to US President Donald Trump, and OpenAI CEO Sam Altman regarding the company’s future amid the AI boom.
Following the offer, Altman responded on Musk’s platform X, stating, “no thank you but we will buy Twitter for $9.74 billion if you want.”
OpenAI is widely recognized for bringing AI tools into the mainstream and driving significant investment in the sector.
Musk and Altman co-founded OpenAI in 2015 as a non-profit, but their relationship deteriorated after Musk left in 2018.
Altman is reportedly restructuring OpenAI into a for-profit entity, eliminating its non-profit board—a shift Musk claims contradicts the company’s original mission of developing AI for the greater good. However, OpenAI argues that transitioning to a for-profit model is necessary to fund advanced AI research.
Musk’s AI company, xAI, is backing the takeover bid along with private equity firms Baron Capital Group and Valor Management.
“OpenAI must return to its original mission as an open-source, safety-focused entity. We will ensure that happens,” Musk stated.
The $97.4 billion bid is significantly lower than OpenAI’s $157 billion valuation in October 2024. Reports indicate the company’s latest funding discussions value it at $300 billion.
Toberoff noted that Musk’s consortium is willing to match or exceed any competing offer.
“As OpenAI’s co-founder and the most innovative tech leader, Musk is best positioned to safeguard and advance the company’s technology,” Toberoff stated on behalf of Musk and other investors.
Meanwhile, OpenAI is collaborating with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to develop $500 billion worth of AI infrastructure in the US.
The initiative, named The Stargate Project, was announced by President Trump at the White House as “the largest AI infrastructure project in history,” aimed at keeping the “future of technology” within the US.
Despite his advisory role to Trump, Musk has cast doubt on the project’s funding, claiming it lacks the necessary capital but has not provided further details to support his assertion.
Emily Martinez
