Elon Musk is back in the spotlight, but this time, it’s not about rockets or electric cars. In a high-profile move that has stunned the tech world, Musk is leading a group of investors with a staggering $97.4 billion offer to buy OpenAI, the parent company of ChatGPT. If successful, this acquisition would not only hand Musk majority control of one of the most transformative AI companies but also set the stage for a new era in artificial intelligence.
This bid, which has been met with surprise and intrigue, signals a shift in the balance of power within the rapidly evolving world of AI technology. Musk’s offer is seen as an attempt to take charge of OpenAI, a company he co-founded in 2015, but left years later due to disagreements over its direction.
A Rift with OpenAI’s Leadership
The proposed buyout follows a series of public clashes between Musk and OpenAI CEO Sam Altman. Musk has long accused Altman and the OpenAI board of straying from the nonprofit ideals that the company was originally founded on. He claims that the AI giant has abandoned its mission of prioritizing safety and transparency in favor of profit-making ventures, a move Musk views as dangerous.
Musk’s frustration with OpenAI is not new. “If Sam Altman and the current 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,” said Marc Toberoff, an attorney representing Musk’s investment group. “We will make sure OpenAI returns to its open-source roots, focusing on safety and being a force for good.”
The core of Musk’s concerns lies in OpenAI’s transformation from a nonprofit organization to a hybrid structure with OpenAI LP—a for-profit company—operating under the larger umbrella. While the nonprofit entity still holds significant sway over the company’s direction, it’s the for-profit segment that has driven OpenAI’s rapid rise to a valuation close to $100 billion.
The Battle for Control
At the heart of this conflict is Musk’s desire for greater influence over the future of AI. His company, X.AI, competes directly with OpenAI, making the acquisition even more contentious. While OpenAI has become a leading force in AI development, attracting major investors like Microsoft, Musk’s deep pockets and vast tech empire could make him a formidable new owner.
Sam Altman, however, is unflinching in his response. In a post on social media platform X, Altman shot down Musk’s overtures with a sharp, “no thank you, but we will buy Twitter for $9.74 billion if you want.” The retort reflects the ongoing tension between the two tech giants, as Musk’s involvement with Twitter (now rebranded X) continues to be a topic of heated debate.
The Shadow of a Legal Battle
Musk’s offer is not the only legal drama surrounding OpenAI. In fact, his relationship with the company has been rocky for years. In 2024, Musk sued OpenAI after the company’s decision to push ahead with its aggressive pursuit of artificial general intelligence (AGI). Musk accused OpenAI of accelerating the development of AGI without regard for the potential risks it posed to humanity, claiming that the company was more focused on maximizing profits than on the safety of its creations.
The lawsuit, which Musk later dropped, painted a picture of a company that had veered too far from its original altruistic goals. Musk had originally co-founded OpenAI because he and his partners believed AGI posed an existential threat to humanity, and the company’s oversight board was designed to ensure that its AI products would be safe and ethically developed.
But the immense pressure from investors eager for a return on their billions has changed the company’s trajectory. Altman, who has become the face of OpenAI’s success, has been accused of pushing for a faster pace of innovation to satisfy financial backers. In this “move fast and break things” culture of Silicon Valley, some critics argue that the rapid rollout of AI technologies without adequate safeguards could have serious consequences, especially with products like ChatGPT that can convincingly mimic human speech and behavior.
A Strange Turn of Events
Late in 2023, OpenAI’s board of directors made headlines when they unexpectedly fired Altman, only to reverse the decision within days after an outcry from employees and investors. Some members of the board were reportedly concerned that the company was rushing forward without giving sufficient thought to safety, but Altman’s leadership has been credited with OpenAI’s immense success in the AI race.
Musk’s legal actions have highlighted the ongoing feud between the two tech giants, which began when he left OpenAI in 2018. Musk had hoped to convince his fellow co-founders to let Tesla acquire the company, but when that bid failed, he withdrew from the organization. His legal claims since then have ranged from accusations of racketeering to arguing that OpenAI is violating its own founding charter.
What’s Next for OpenAI and Musk?
Musk’s offer to buy OpenAI is a bold one that could reshape the entire AI landscape. If the deal goes through, Musk will not only gain control over the company that is behind some of the most cutting-edge AI technologies but also have a say in the future direction of artificial intelligence.
As the world watches, it remains to be seen whether Altman and OpenAI’s board will be willing to sell, or if Musk’s attempt to wrest control of the company will be met with resistance.
