In a bold move, Elon Musk is leading a group of investors who have offered to buy OpenAI, the parent company of ChatGPT, for $97.4 billion. The bid, first reported by the Wall Street Journal, could give Musk majority control of OpenAI, which rivals his own AI venture, X.AI.
Musk, a co-founder of OpenAI, has long feuded with its CEO Sam Altman, accusing him of steering the company away from its original nonprofit mission. OpenAI operates under a unique structure in which a nonprofit oversees a for-profit entity called OpenAI LP. This model has allowed OpenAI to attract major investors like Microsoft and Thrive Capital, pushing its valuation to nearly $100 billion in just a few years.
Musk’s Legal Battles With OpenAI
Musk has filed multiple lawsuits against OpenAI and Altman, alleging the company misrepresented itself as a philanthropy while aggressively pursuing profit. “If Sam Altman and the present OpenAI, Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time,” said Marc Toberoff, an attorney representing Musk’s investor group. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”
In response, Altman dismissed the offer with a sharp retort on X: “no thank you but we will buy Twitter for $9.74 billion if you want.”
OpenAI’s Shift From Nonprofit To Powerhouse
Musk initially supported OpenAI’s creation in 2015 out of concern that artificial general intelligence (AGI) could pose a serious threat to humanity. The company was structured with a board of overseers to ensure responsible development, and its code was initially open-source.
However, with major financial backers demanding returns, OpenAI’s for-profit arm has rapidly expanded, launching products at breakneck speed. This approach has led to concerns that AI tools—capable of mimicking human speech and generating realistic images—could spread misinformation and manipulation.
The Tumultuous Leadership Of Sam Altman
OpenAI has seen its share of corporate drama. In late 2023, the board abruptly fired Altman, only to reinstate him days later following internal and investor backlash. The incident exposed deep divisions within OpenAI’s leadership, with former directors warning the company was prioritizing rapid development over safety.
Musk’s legal battles with OpenAI have only intensified. He first sued the company in June 2024 but withdrew after OpenAI published emails from its early days, in which Musk acknowledged the need for significant revenue to sustain AI development. In August 2024, Musk refiled his lawsuit, this time accusing OpenAI of “racing to develop artificial general intelligence to maximize profits” and engaging in racketeering.
Musk vs. Altman: A Personal Feud?
While Musk frames his legal battles as a fight for OpenAI’s founding principles, OpenAI has accused him of harboring resentment over his failed attempt to acquire the company in 2018. After Musk left OpenAI, Altman led the company’s meteoric rise, cementing its dominance in the AI industry.
With OpenAI’s board unlikely to accept Musk’s bid, the battle for control over one of the world’s most powerful AI companies is far from over.
