Billionaire entrepreneur Elon Musk and a group of investors have made a staggering $97.4 billion offer to acquire OpenAI, intensifying the ongoing legal and ideological battle between Musk and the artificial intelligence company he helped establish. However, OpenAI CEO Sam Altman swiftly declined the offer, adding a sarcastic twist by suggesting that OpenAI would rather purchase Twitter (now X) for $9.74 billion instead.
Musk vs. OpenAI: The Growing Rift
The tension between Musk and OpenAI dates back to 2015, when both he and Altman co-founded the AI research firm as a nonprofit dedicated to advancing AI for the public good. However, in 2018, Musk stepped away from OpenAI’s board. Since then, he has been vocal about the organization’s shift towards a profit-driven model, a move he believes contradicts its founding principles.
Musk, alongside his own AI startup xAI and a consortium of investment firms, is looking to return OpenAI to its nonprofit roots. His legal team argues that OpenAI’s transition into a for-profit entity violates its original mission and commitments.
Legal Battle Over OpenAI’s Future
Musk’s discontent has escalated into a legal battle. Last year, he sued OpenAI, first in a California state court and later in federal court, claiming that the company had strayed from its mission of benefiting the public. During recent court proceedings, Musk’s attorney Marc Toberoff emphasized that OpenAI was originally intended to remain a nonprofit, ensuring AI advancements would serve the public rather than corporate interests.
During a California federal court hearing, Musk sought an injunction to prevent OpenAI from fully transitioning to a for-profit corporation. However, U.S. District Judge Yvonne Gonzalez Rogers appeared skeptical of Musk’s claim that he would suffer irreparable harm if the transition proceeded. Still, she acknowledged concerns regarding OpenAI’s close ties with Microsoft, stating that the case could proceed to trial next year.
Investor Backing and Musk’s Vision for OpenAI
Musk’s bid to reclaim OpenAI has garnered support from several major investment firms, including:
- Baron Capital Group
- Valor Management
- Atreides Management
- Vy Fund
- Emanuel Capital Management
- Eight Partners VC
Musk’s legal team argues that if OpenAI’s current leadership is intent on becoming a fully for-profit corporation, the nonprofit should receive fair compensation for what it is losing—control over one of the most transformative technologies of the modern era.
According to Toberoff, Musk remains the ideal leader to ensure OpenAI’s technology continues to serve the public interest, given his track record as a visionary in AI, space exploration, and electric vehicles.
What’s Next for OpenAI and Musk?
With Altman rejecting Musk’s acquisition offer, the battle over OpenAI’s future direction is far from over. The legal showdown is expected to play a crucial role in determining whether OpenAI remains a public-benefit AI research lab or fully transitions into a for-profit powerhouse—potentially under the growing influence of Microsoft.
As the dispute continues, the AI industry watches closely, as the outcome could reshape the future of AI development, regulation, and ownership.
