A group of investors led by Elon Musk has made an unsolicited $97.4 billion offer to acquire control of the nonprofit organization behind OpenAI. According to Jessica Toonkel and Berber Jin of The Wall Street Journal, the bid challenges Sam Altman’s plans to convert OpenAI into a for-profit company. Musk, who co-founded OpenAI with Altman in 2015, claims the move would restore the organization’s original open-source and safety-focused mission.
Altman promptly rejected the offer on X, responding with a sarcastic counter-offer to purchase Twitter. The bid comes amid ongoing legal disputes between Musk and OpenAI regarding the company’s direction and its partnership with Microsoft.
The investor consortium includes Musk’s AI company xAI, along with Valor Equity Partners, Baron Capital, Atreides Management, and other prominent investors. The offer could complicate OpenAI’s current plans, including a proposed $500 billion AI infrastructure project called Stargate and negotiations for new funding rounds.
OpenAI is currently valued at $157 billion and is discussing additional funding that could raise its valuation to $300 billion. The company aims to complete its transition to a for-profit structure by late 2026, though it faces various challenges, including opposition from Meta Platforms and ongoing negotiations with Microsoft.