Musk’s $97.4bn bid? OpenAI isn’t interested
Matt V
February 12, 2025
AI WARS
Sam Altman, CEO of OpenAI, has turned down a $97.4bn (£78.4bn) buyout offer from an investment group led by Elon Musk.
The bid, submitted by Musk’s attorney, aimed to acquire all of OpenAI’s assets, but Altman dismissed it with a blunt response on Musk’s platform, X: "No thank you, but we will buy Twitter for $9.74 billion if you want."
Despite Altman’s rejection, OpenAI’s board has the final say and could still consider a sale if the offer increases.
Some question whether Musk is serious about the takeover or if this is part of his ongoing legal battle with Altman.
The bid may force OpenAI to reassess how it values its assets during its transition from a non-profit to a for-profit business.
OpenAI must fairly compensate the non-profit arm and give it a % stake in the new corporation based on a fair valuation of the company.
So, Musk’s bid may have just caused Altman a big headache, even if he won’t publicly admit it.
The backstory ICYMI:
Musk and Altman co-founded OpenAI in 2015 as a non-profit, but Musk left in 2018.
OpenAI later shifted to a for-profit model to secure funding for AI development—a move Musk argues goes against its original mission.
Critics point out that Musk’s own AI company, xAI, is also a for-profit competitor, raising doubts about his intentions.
The bigger picture
OpenAI’s latest funding talks suggest a $300bn valuation, far higher than Musk’s $97.4bn bid.
His group has hinted at raising the offer, but questions remain about how serious the takeover attempt is.
Meanwhile, OpenAI is working with Oracle, a Japanese firm, and an Emirati wealth fund on The Stargate Project, a $500bn AI infrastructure plan in the US.
Announced by President Trump as the biggest AI project to date, Musk has cast doubt on its funding but hasn’t provided evidence to back his claim.
The AI war is heating up, and we’re just here for the memes.