Elon Musk-led group makes surprise bid of nearly $100bn for OpenAI
Sam Altman, OpenAI’s CEO and co-founder, responded that he would not accept and offered to buy X instead
In a surprise bid, tech billionaire Elon Musk has made a jaw-dropping $97.4 billion proposal to buy out OpenAI whose AI research firm he started in 2015 but came to have a falling out with. The bid promises to be one of the highest-profile corporate struggles in AI history.
Musk, who has also been a player in businesses like Tesla, SpaceX, and Neuralink, was an early supporter of OpenAI. He broke away from the organization, though, in 2018 due to disagreements about its governance and direction. OpenAI has developed into a leading AI giant, spearheading huge language models like ChatGPT and pathfinding research on artificial general intelligence (AGI).
The offer, fronted by Musk's AI venture xAI and a collection of high-profile investors, has the tech world breathing in awe. But Sam Altman, CEO of OpenAI, responded to the overture not merely with a turn-down—he followed up with a clever counter pitch to acquire Twitter (now known as X) for $9.74 billion.
So just what is unfolding here? Here's the way it goes:
A Feud Years in the Making
Musk co-founded OpenAI in 2015 with the mission of keeping AI open-source and serving humanity. But he departed from the company in 2019, citing differences over its path. OpenAI then shifted toward becoming for-profit, joining other technology titans like Microsoft and pushing edge AI technologies like ChatGPT.
Musk has repeatedly faulted OpenAI for abandoning its initial purpose. He even sued the company for its restructuring proposals, withdrew the suit, and then filed it again
Now, with this massive bid, he’s making a bold attempt to take back control—or at least make things very complicated for OpenAI’s leadership.
What’s at Stake?
The bid is not about money; it's about control and power over the future of AI. Musk contends that OpenAI has gotten too far away from its initial open-source, safety-first vision. His own AI firm, xAI, has positioned itself as a more open alternative, even open - sourcing its AI chatbot Grok.
Meanwhile, OpenAI holds firm that restructuring is necessary for it to contend. OpenAI argues that in its non-profit status, it will not have the ability to raise investors and become more effective at creating cutting-edge technology. OpenAI hopes to finish restructuring by 2026, but Musk's out-of-the-blue bid complicates matters.
The Twitter Clapback
Altman's reaction to Musk's offer was the stuff of legend. Rather than simply "no," he responded on Twitter: "No thank you, but we will buy Twitter for $9.74 billion if you want." Musk, who acquired Twitter for $44 billion in 2022 and renamed it X, had a ready reply with a one-word slur: "Swindler."
This conversation shows the intense hatred between the two tech billionaires. It's personal, not business. And when these two giants collide, the AI community observes with the knowledge that what happens will determine the fate of artificial intelligence.
SOURCE BY :- https://www.theguardian.com/technology/2025/feb/10/elon-musk-open-ai-bid
What Happens Next?
Shareholders linked to Musk have indicated their willingness to either improve their bid or join other offers for OpenAI. If OpenAI stands firm, though, a solution is not coming—at least, not legally. Meanwhile, Altman keeps pushing OpenAI's vision to become a leading player in AI research, irrespective of Musk's involvement.
As the competition gets underway, one can see that AI is more than algorithms and data; there are power dynamics, ego battles, and substantial business moves at play. With the rapidly shifting technological landscape, things can turn unexpectedly at any time.
What Are Your Thoughts?
Will Musk's proposal compel OpenAI to reevaluate its strategy? Or is this simply another episode in an ongoing legacy of competition? We welcome your insights in the comments!
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