In a surprising turn of events, OpenAI CEO Sam Altman has rejected a staggering $97.4 billion takeover bid from Elon Musk and his group of investors. The Wall Street Journal reported that the offer was made to OpenAI’s board on February 10.
Altman wasted no time in responding. In a post on X (formerly Twitter) the same day, he quipped, “no thank you but we will buy Twitter for $9.74 billion if you want.”
Musk, who acquired Twitter for $44 billion in 2022, fired back by sharing a video of Altman’s 2023 congressional testimony, in which he stated he held no equity in OpenAI. Musk captioned the video “Scam Altman.”
The tension between Altman and Musk traces back to OpenAI’s origins in 2015, when both were co-founders. Musk has been vocal about his opposition to OpenAI’s transition from a nonprofit to a for-profit entity under Altman’s leadership. Last year, Musk sued OpenAI, alleging that the firm had strayed from its nonprofit mission, though he later withdrew the case after emails surfaced showing Musk’s prior acknowledgment of the company’s need for funding.
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated through his attorney, Marc Toberoff. “We will make sure that happens.”
The bid to acquire OpenAI reportedly includes backing from Musk’s AI venture, xAI, as well as venture firms such as Baron Capital, Vy Capital, and 8VC. Toberoff emphasized that the group is willing to raise the offer if necessary. “If Sam Altman and the present OpenAI board are determined to convert to a fully for-profit entity, it is crucial that the nonprofit be fairly compensated for relinquishing control over such a transformative technology,” he said.
OpenAI transitioned into a for-profit structure in 2019 after Musk’s departure, forming OpenAI Global, LLC, which has since attracted major funding from Microsoft and other investors. OpenAI is also involved in the ambitious $500 billion AI infrastructure project called “Stargate,” announced last month by former U.S. President Donald Trump.
The AI firm was valued at $157 billion in a $6.6 billion funding round in October 2024. However, recent reports from CNBC on February 7 suggest SoftBank is finalizing a $40 billion deal with OpenAI at a valuation of $260 billion, further solidifying its dominance in the AI space.
