OpenAI CEO Sam Altman has seemingly dismissed a $97.4 billion takeover bid from Tesla and SpaceX CEO Elon Musk, escalating the ongoing feud between the two tech moguls over the future of artificial intelligence.
According to The Wall Street Journal, a group of investors led by Musk submitted the massive buyout proposal to OpenAI’s board of directors on February 10. However, Altman quickly responded on X (formerly Twitter), stating, “no thank you but we will buy Twitter for $9.74 billion if you want.”
Scam Altman
— Harry Bōlz (@elonmusk) February 10, 2025
pic.twitter.com/j9EXIqBZ8u
Musk, who bought Twitter for $44 billion in 2022 and rebranded it as X, seemingly retaliated by posting a video of Altman’s 2023 congressional testimony, where the OpenAI CEO stated he owns no equity in the company. Musk captioned the post, “Scam Altman.”
The rivalry between the two stems from OpenAI’s shift from a nonprofit model, which Musk originally supported, to a for-profit venture. Musk co-founded OpenAI with Altman in 2015 but left in 2018, later criticizing the company’s direction and its close ties with Microsoft. In August, he filed a lawsuit against OpenAI and Altman, alleging they deviated from their original mission to develop artificial intelligence for the public good. OpenAI countered Musk’s claims by releasing past emails suggesting he was aware of the need for a profitable model.
Musk’s takeover bid is backed by his AI startup xAI and prominent investment firms, including Baron Capital, Vy Capital, and 8VC. His legal representative, Marc Toberoff, emphasized that the investor group is willing to match or exceed any competing bids. “If OpenAI’s leadership is determined to become a fully for-profit corporation, then the nonprofit entity must be fairly compensated for losing control over the most transformative technology of our time,” Toberoff told The Wall Street Journal.
Despite Musk’s aggressive moves, OpenAI’s valuation has soared. The company was valued at $157 billion in an October 2023 funding round, and recent reports suggest a potential $40 billion deal with SoftBank, bringing OpenAI’s valuation up to $260 billion.
Also Read: Is DeepSeek Stealing AI Secrets? Microsoft and OpenAI Investigate Suspicious Data Breach
With OpenAI’s continued expansion and its involvement in the $500 billion AI infrastructure project “Stargate,” the battle over its control is far from over.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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