Elon Musk-led group makes $97.4B bid to acquire OpenAI, aims to restore its open-source AI mission

Elon Musk and a group of investors have put forward a $97.4 billion offer to buy OpenAI, the artificial intelligence startup behind ChatGPT, according to the Wall Street Journal. The bid was submitted to OpenAI’s board on Monday by Musk’s attorney, Marc Toberoff.

This move ramps up the ongoing feud between Musk and OpenAI CEO Sam Altman, highlighting their conflicting visions for the future of the company, which has become a central player in the generative AI boom.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement provided by Toberoff. “We will make sure that happens.”

The bid is backed by Musk’s AI company, xAI, and the Wall Street Journal reports that a merger between xAI and OpenAI could follow if the deal goes through.

“A consortium of investors led by Elon Musk is offering $97.4 billion to buy the nonprofit that controls OpenAI, upping the stakes in his battle with Sam Altman over the company behind ChatGPT,” WSJ reported.

Musk, who co-founded OpenAI with Altman in 2015, left the company before it gained widespread attention. In 2023, he launched xAI, a direct competitor in the AI space. OpenAI, meanwhile, has been working to transition from a nonprofit to a for-profit model, stating that this shift is necessary to secure funding for advanced AI development.

Last year, Musk filed a lawsuit against OpenAI and Altman, claiming the company abandoned its nonprofit roots in favor of profit. According to Musk, the founders originally approached him to support a nonprofit committed to developing AI for the benefit of humanity, a mission he now argues has been compromised.

In early 2024, Musk sued OpenAI and its CEO Sam Altman for “breach of contract” and abandonment of its original mission. Then in December, Musk requested a preliminary injunction to halt OpenAI’s plans for restructuring. This legal maneuver targeted OpenAI, Sam Altman, Microsoft, and several former board members, alleging improper handling of competitive information and violations of the company’s founding non-profit principles.

Meanwhile, OpenAI, Musk, Toberoff, and Microsoft, a key OpenAI backer, have not responded to requests for comment. It remains unclear whether OpenAI will accept the offer.