Elon Musk’s $97 billion bid for Open AI: Battle for the future of Artificial Intelligence

Elon Musk and a group of investors have now bid $97 billion to assume control of OpenAI, increasing the existing tensions between the billionaire and the artificial intelligence firm. This offer to acquire OpenAI came amid a row of disagreements between Elon Musk and the OpenAI CEO Altman.

According to Reuters, CEO Altman posted on X saying, “No thank you but we will buy Twitter for $9.74 billion if you want.”

Musk’s Move to Reclaim Influence

Having left OpenAI at the beginning in 2018, Musk has continued to criticize it. He criticized the company as it transitioned from a non-profit AI lab to a commercially interested company with heavy commercial tendencies. This newest Elon Musk acquisition of OpenAI shows the intent to reorient the organization towards his views on AI research. In December 2024, Musk sued Open AI as CEO Altman announced ChatGPT’s shift to a for-profit organization.

The acquisition stands as one of the biggest private AI deals in history while reshaping the competitive environment of the artificial intelligence business landscape. The successful acquisition would grant Musk control of OpenAI’s ChatGPT technology and its deep AI research initiatives. Musk said in a statement on Monday, “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.”

OpenAI’s Response

OpenAI has not issued any public statement about this proposal. Intercompany sources indicate OpenAI’s CEO Altman would decline Musk’s acquisition bid because of past disagreements between these entities. Recently SoftBank invested $1.5 billion in Open AI to expand in new industries.

Musk’s acquisition proposal has drawn renewed attention to issues related to the future governance and moral aspects of artificial intelligence. The open conflict between Musk and OpenAI exists because he believes the corporation strayed from its founding principles to develop AI for humanity’s benefit. The industry believes OpenAI would take a more open-source direction if Musk takes over leadership since he’s implemented his xAI project alongside other recent AI initiatives.

Meanwhile, Musk’s bid has reignited the debate over the future of AI governance and ethics. His ongoing feud with OpenAI stems from concerns that the company has deviated from its original mission of developing AI for the benefit of humanity. Some industry analysts believe that, under Musk’s leadership, OpenAI could shift toward a more open-source approach, aligning with his recent AI project

According to sources, if Musk wins the case, he will merge xAI with Open AI. Though xAI raised $6 billion in Series C funding at a valuation of $40 billion.

Musk vs. OpenAI

This long-standing Elon Musk vs OpenAI continues to grow. Musk founded OpenAI as a co-creator in 2015 before they split due to their divergent business strategies, and he subsequently issued public messages casting doubt on OpenAI’s priorities. OpenAI CEO Altman alongside company leadership has taken a defensive position by asserting commercial use enables funding of advanced AI research.

Musk’s suspected AI expansion plans have surfaced after the proposed deal unfolded. Musk has channeled most of his investments through his businesses xAI and Tesla into artificial intelligence development. The acquisition would allow him to obtain exclusive access to leading AI models from OpenAI which would speed up his development efforts to create AI systems according to his preferences.

While the Elon Musk OpenAI bid is a bold move, whether it will materialize remains uncertain. Regulatory challenges, existing partnerships with tech giants like Microsoft, and internal resistance from OpenAI could complicate any takeover efforts.

Gil Luria, an analyst at D.A. Davidson said, “Musk’s offer to buy OpenAI’s nonprofit should significantly complicate OpenAI’s current fundraising and the process of converting into a for-profit corporation. The offer seems to be backed by more credible investors … OpenAI may not be able to ignore it. It will be the fiduciary responsibility of OpenAI’s board to decide whether this is a better offer, which could call into question the offer from SoftBank.“