Sam Altman has already responded with a “no thank you.”
In a dramatic twist that could shake up the artificial intelligence landscape, Elon Musk has reportedly made a bold $97.4 billion offer to acquire OpenAI. According to The Wall Street Journal, a group of investors led by Musk’s AI-focused startup, xAI, submitted an unsolicited bid to OpenAI’s board of directors on Monday. The proposal aims to gain control of the nonprofit entity that oversees OpenAI’s for-profit arm, marking yet another chapter in the complex and often contentious history between Musk and OpenAI.
Elon Musk’s Vision for OpenAI
Musk, a vocal advocate for open-source AI and a longtime critic of OpenAI’s recent trajectory, framed the bid as an effort to return the organization to its original mission. In a statement shared through his attorney, Musk said:
“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”
Musk has repeatedly expressed concerns about the direction OpenAI has taken under CEO Sam Altman, particularly regarding its shift away from transparency and open-source principles. If successful, the acquisition would likely see significant changes in OpenAI’s governance, strategy, and approach to AI development.
Sam Altman’s Witty Response
While OpenAI has yet to issue an official statement on the offer, CEO Sam Altman took to X (formerly Twitter) to deliver a pointed response. In a post dripping with sarcasm, Altman wrote:
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
The tweet immediately went viral, with social media users dissecting the playful jab at Musk’s ownership of X, which has faced financial struggles since his acquisition in 2022.
Musk Fires Back
Never one to back down from a public spat, Musk responded sharply. In a series of posts, he labeled Altman a “Swindler” before escalating the rhetoric by referring to him as “Scam Altman.” The heated exchange highlights the deep tensions between the two tech titans, whose relationship has soured significantly over the years.
Can Musk’s Bid Succeed?
While Musk’s bid is substantial, the likelihood of success remains uncertain. OpenAI’s unusual corporate structure complicates any potential takeover. Unlike traditional companies with shareholders obligated to maximize profits, OpenAI is governed by a nonprofit board that does not operate under the same fiduciary responsibilities. This structure could serve as a shield against Musk’s aggressive acquisition attempt.
If OpenAI were purely a for-profit entity, Musk’s bid might trigger what is known in corporate law as a “Revlon moment.” This principle states that, in certain circumstances, a company’s board of directors must prioritize maximizing shareholder value, potentially forcing a sale to the highest bidder. However, OpenAI’s hybrid nonprofit-for-profit model gives its board significant discretion in rejecting offers that do not align with the organization’s mission.
A History of Clashes
Musk was one of OpenAI’s co-founders in 2015, contributing substantial funding in its early days. However, he left the organization in 2018, citing disagreements over its direction and concerns about AI safety. Since then, he has been openly critical of OpenAI’s move toward commercialization, particularly its multibillion-dollar partnership with Microsoft.
xAI, Musk’s own AI company, was launched in 2023 as a direct competitor to OpenAI, aiming to build safer and more transparent AI models. This latest bid suggests that Musk is willing to take drastic measures to regain influence over OpenAI’s future.
What Happens Next?
For now, OpenAI’s board is likely to reject the offer outright. However, Musk’s immense resources and relentless pursuit of AI development suggest that this battle is far from over. If he truly wants control over OpenAI, he may pursue alternative strategies, such as lobbying for changes in governance or leveraging his influence to sway investors.
Meanwhile, the public feud between Musk and Altman adds a layer of spectacle to the high-stakes world of AI leadership. Whether this bid is a genuine attempt to reshape OpenAI or a headline-grabbing move remains to be seen, but one thing is certain: the AI arms race just got even more intense.
As the drama unfolds, all eyes will be on OpenAI’s next move—and whether Musk has another trick up his sleeve.
