Elon Musk’s $97B Offer: A Threat or Opportunity for OpenAI?
Elon Musk’s $97bn offer is a nuisance for Sam Altman’s OpenAI
To most startups, a buyout with nearly $100 billion on the table would be a pipe dream. OpenAI is not most startups, however, and Elon Musk is not any purchaser.
On February 11th, Musk and a group of investors made an unexpected $97 billion bid to acquire the assets of OpenAI’s controlling nonprofit. OpenAI, the leading force behind cutting-edge artificial intelligence models, swiftly turned it down. This isn’t just a business move—it’s the latest battle in an ongoing feud between Musk and OpenAI’s CEO, Sam Altman, a conflict that could shape the future of AI development and industry leadership.
A Battle Over AI’s Future—or Just Business?
Musk, who was one of OpenAI’s original founders, has been vocal about his disapproval of the company’s shift toward a for-profit model. He argues that this shift betrays OpenAI’s original mission: to ensure AI benefits all of humanity, not just shareholders. But there’s another layer to this story—Musk has his own AI venture, xAI, which competes directly with OpenAI.
By extending this offer, Musk is not only attempting to acquire OpenAI he's pressuring its leadership and hindering its fundraising process. OpenAI has been negotiating to raise approximately $40 billion from investors such as SoftBank in order to meet its gigantic computing demands. By entering a huge bid into the equation, Musk is making it more difficult for OpenAI to negotiate its own worth.
OpenAI Fires Back
It wasn't long before OpenAI retaliated. Altman, whose quick wit is as well-known as his sharp tongue, launched a sarcastic counterbid on Musk's own platform, X (formerly Twitter): $9.7 billion to acquire X.
Chris Lehane, the spokesperson for OpenAI, made it abundantly clear: "OpenAI is not for sale." The nonprofit board, which retains much authority, also appears to be in accord. Legally, their responsibility is to keep OpenAI true to its mission of creating safe and beneficial AI. That provides them with the clout to reject any offer that does not advance this goal.
Musk's Legal Chess Game
Musk's actual intent may not be to buy OpenAI but to make life as hard as possible for its executives. His lawyers have already appealed to regulators in California and Delaware, where OpenAI is located, to look into the restructuring of the company. If the government intervenes, it can make it more difficult for OpenAI to become a more conventional for-profit operation.
Some within OpenAI believe Musk’s efforts won’t gain much traction, especially in states run by Democrats. However, legal experts argue that the law is clear, and regulators will have to take Musk’s claims seriously, regardless of politics.
The Bigger Picture: AI’s Arms Race
This is not merely a personal rivalry—it's a fight for dominance of the future of AI. OpenAI, with Microsoft's heavy backing, is forging ahead with revolutionary models, while Musk's xAI is attempting to play catch-up. Tech giants Google and Meta are also in the running to control artificial intelligence.
Adding to the drama, Musk was said to have been caught off guard by the January 21st launch of the "Stargate Project." The $100 billion fund, which is spearheaded by OpenAI and SoftBank, will be investing in data centers throughout the U.S. Musk dismissed it immediately, stating the backers never had the funds. His public skepticism furthered strained his already strained relationship with Altman.
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https://www.economist.com/business/2025/02/11/elon-musks-97bn-offer-is-a-headache-for-sam-altmans-openai
What's Next?
With OpenAI dug in, Musk's next steps are unclear. But this is certain: he won't be easily deterred. Through court fights, competing AI development, or ongoing public pressure, Musk is set on derailing OpenAI's course. What's your take—are Musk's plans going to succeed, or will OpenAI maintain its lead? Let us know in the comments!
Altman, for his part, isn't fretting. "I think he's just trying to slow us down," he said. "I feel for the guy. I don't think he's a happy person."
If there's one thing history teaches us, it's that Musk does his best work in anarchy. This battle is far from won, and the AI community will be watching with bated breath to see what happens next.
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