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Elon Musk Offers $97.4B to Acquire OpenAI Nonprofit
Elon Musk leads a $97.4B bid to acquire OpenAI’s nonprofit amid tensions with Sam Altman over its for-profit transition. Altman responds: "No thank you, but we will buy Twitter for $9.74B."
ND
by News Desk
2025-02-11
Elon Musk Offers $97.4B to Acquire OpenAI Nonprofit

A consortium led by billionaire entrepreneur Elon Musk has offered $97.4 billion to acquire the nonprofit that controls OpenAI. This latest bid escalates tensions between Musk and OpenAI CEO Sam Altman over the organization's planned transition to a for-profit structure.

Musk, who co-founded OpenAI in 2015 but left before it rose to prominence with ChatGPT, is pushing to prevent the company from shifting away from its nonprofit roots. Musk stated that his consortium’s objective is to "return OpenAI to the open-source, safety-focused force for good it once was."

Altman's Sharp Response

Altman, who has been at the forefront of OpenAI's transformation, quickly dismissed Musk's bid, posting on X (formerly Twitter): “No thank you, but we will buy Twitter for $9.74 billion if you want.”

Despite Musk's statement of intent, Altman reportedly assured staff that OpenAI's board has no interest in entertaining the offer.

Consortium Backing and Financial Complexity

Musk's consortium includes his AI venture xAI, Baron Capital Group, Emanuel Capital, and others. The Wall Street Journal reported that xAI could potentially merge with OpenAI if the deal proceeds.

However, financing such a massive bid would require Musk to leverage his Tesla stock, valued at approximately $165 billion, or use stakes in SpaceX as collateral, according to investment experts.

Legal Dispute and Transition Challenges

Musk previously sued Altman and OpenAI, accusing them of breaching agreements by prioritizing profit over the public good. His lawsuit aims to block OpenAI's conversion to a for-profit entity.

Jonathan Macey, a corporate governance expert at Yale Law School, noted the complications Musk's bid creates: “If OpenAI prefers to sell for less money, it raises concerns about protecting the nonprofit's beneficiaries.”

Market Impact and Valuation Concerns

OpenAI, valued at $157 billion in its last funding round, has reportedly been in talks with SoftBank Group for a $40 billion funding round at a projected $300 billion valuation.

Gil Luria, an analyst at D.A. Davidson, commented, “Musk’s bid introduces complexity into OpenAI’s fundraising process. The board may have a fiduciary responsibility to consider this offer seriously.”

A Battle Far from Over

As tensions escalate between Musk and Altman, industry watchers anticipate that this high-stakes saga could redefine the future of AI development and governance.

 
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