Elon Musk and investors make $97.4 billion bid to take control of OpenAI: WSJ

Elon Musk and a group of investors have reportedly placed a $97.4 billion bid to acquire OpenAI’s nonprofit arm, escalating his ongoing dispute with OpenAI CEO Sam Altman. As per a WSJ report, the proposal, submitted by Musk’s lawyer Marc Toberoff, challenges Altman’s efforts to transition OpenAI into a for-profit entity and could significantly impact the company's future direction.

Musk’s AI company, xAI, is leading the $97.4 billion bid with support from key investors, including Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC, the venture firm co-founded by Palantir’s Joe Lonsdale. Hollywood executive Ari Emanuel is also backing the deal through his investment fund. 

Elon Musk, who co-founded OpenAI in 2015 before parting ways with the company, has been vocal about his disapproval of its shift towards commercialisation. Following news of his $97.4 billion bid, Musk stated, "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."

no thank you but we will buy twitter for $9.74 billion if you want

— Sam Altman (@sama) February 10, 2025

In response, OpenAI CEO Sam Altman took a jab at Musk on X (formerly Twitter), dismissing the offer and jokingly suggesting, “No thank you, but we will buy Twitter for $9.74 billion if you want,” tweaking Musk’s bid by shifting the decimal point.

Originally launched as a nonprofit, OpenAI created a for-profit subsidiary in 2019 to secure investments from major players like Microsoft. Altman now intends to separate the nonprofit entity while retaining an equity stake in the newly structured company. Musk’s $97.4 billion bid brings scrutiny to the nonprofit’s valuation and raises the possibility of him or his investors gaining a controlling stake.

Musk has taken legal action against OpenAI, alleging it has shifted away from its nonprofit mission by aligning too closely with Microsoft. Meanwhile, OpenAI is negotiating equity distribution with investors, including SoftBank, which may invest up to $25 billion. Musk’s bid adds pressure, potentially reshaping the company’s future and leadership decisions.