$97.4 Billion Offer Acquire Open AI : Elon Musk
Elon Musk has made a surprise bid to acquire OpenAI, offering $97.4 billion in an unsolicited takeover attempt. Musk, who was one of OpenAI’s original founders before leaving the company in 2018, led a consortium of investors in this high-stakes move. However, OpenAI, under CEO Sam Altman, swiftly rejected the offer, signaling that the company has no interest in being acquired by Musk . 
Musk’s bid is backed by his AI company xAI, investment firms . The group sent the offer directly to OpenAI’s board, promising to match or outbid any other offers, as per the report.
OpenAI, currently valued at approximately $157 billion, has been in talks to raise further investment, potentially increasing its valuation to $300 billion. This suggests that Musk’s offer may have been well below what OpenAI sees as its true market worth. Additionally, legal and structural challenges make such an acquisition difficult, as OpenAI operates under a nonprofit model with a for-profit subsidiary.
OpenAI, which developed ChatGPT, is shifting to a for-profit model to raise money for AI development. This includes a $40 billion funding round and a $500 billion infrastructure project.
Sam Altman responded to Musk’s bid with skepticism, both publicly and internally. He suggested that Musk’s move was likely an attempt to disrupt OpenAI rather than a genuine effort to acquire it. In a pointed remark on social media, Altman even joked about buying Twitter from Musk for $9.74 billion, to which Musk replied by calling him a “swindler”
This bid is part of a broader tension between Musk and OpenAI, as he has previously criticized the company’s direction and claimed that it has strayed from its original mission. Given OpenAI’s stance and its ongoing efforts to expand independently, Musk’s attempt appears unlikely to succeed at this stage.
Musk’s offer complicates OpenAI’s ongoing talks with Microsoft and other investors. His move also reflects his growing influence where he leads efforts to improve government efficiency.