Elon Musk has a history of bold moves. From launching SpaceX rockets to reshaping the auto industry with Tesla, he is known for shaking things up. Now, he has turned his attention back to OpenAI, the company he co-founded but later distanced himself from.
His latest bid to take over OpenAI has sparked controversy, legal battles, and strong reactions from its leadership and investors.
Elon Musk’s $97 Billion Offer to Take Over OpenAI
Musk, backed by a group of investors, made a $97 billion bid to acquire OpenAI. His goal was to take control and return the company to its nonprofit roots. He has criticized OpenAI’s growing ties with Microsoft, which has invested billions in the AI firm.
According to Musk, if OpenAI wants to operate as a for-profit entity, it should compensate its original nonprofit foundation. However, OpenAI’s leadership swiftly rejected Musk’s offer.
Sam Altman’s Sarcastic Response to Musk’s Bid
Sam Altman, OpenAI’s CEO, dismissed Musk’s offer publicly. On February 11, he posted on X (formerly Twitter), “No thanks, but we’d be willing to buy Twitter for $9.74 billion if you’re interested.”
The response mocked Musk’s struggles with X, which he acquired for $44 billion. Altman’s counteroffer was both a joke and a direct jab at Musk’s leadership. His reaction made it clear that OpenAI was not interested in selling.
Altman Calls Musk’s Move ‘Ridiculous’ at AI Summit
At the 2025 Paris AI Summit, Altman was asked about Musk’s bid. He responded with a blunt statement, “I have nothing to say. I mean, it’s ridiculous.” Speaking to Reuters, he confirmed that OpenAI was not for sale.
He also suggested that Musk frequently tries different tactics to disrupt OpenAI’s progress. Altman emphasized that OpenAI remains focused on its own vision and has no plans to change direction.
Altman Accuses Musk of Trying to ‘Mess with OpenAI’
Altman did not stop at rejecting the offer. He accused Musk of attempting to interfere with OpenAI’s operations. Musk has raised billions for his own AI company, xAI, which competes directly with OpenAI.
According to Altman, Musk should focus on building a better product rather than using lawsuits and interference. He also suggested that Musk operates from a place of insecurity. His comments added to the growing tension between the two AI pioneers.
OpenAI’s Legal Response to Musk’s Bid
OpenAI has taken legal steps against Musk’s takeover attempt. The company submitted a letter to a federal court, arguing that Musk’s bid contradicts his own lawsuit against them. Earlier, Musk has sued OpenAI twice, accusing it of abandoning its nonprofit mission and prioritizing commercial interests.
In August 2024, he claimed OpenAI was recklessly developing artificial general intelligence (AGI) with profit as the main goal. Open AI argued that Musk’s $97 billion bid is proof that he wants to privatize OpenAI for himself and his investors, which is the very thing he accused OpenAI of doing.
Microsoft’s Stake in OpenAI Remains a Barrier
Microsoft has invested over $13 billion in OpenAI, giving it significant influence. OpenAI has reassured Microsoft and other investors that Musk’s bid does not affect their operations.
Musk has criticized OpenAI’s close ties with Microsoft, arguing that the company has strayed from its original mission. However, Microsoft’s backing makes a takeover by Musk highly unlikely. OpenAI remains committed to maintaining its strategic partnerships.
Musk’s Continued Investment in xAI
While attempting to take over OpenAI, Musk is also building his own AI venture. xAI has raised billions in funding and aims to compete directly with OpenAI. Musk believes xAI can develop safer and more open AI technologies.
His focus is on challenging OpenAI’s dominance in the AI space. As the competition heats up, the rivalry between Musk and OpenAI is only growing stronger.
FTC Questions OpenAI’s Shift to a For-Profit Model
The U.S. Federal Trade Commission (FTC) has weighed in on Musk’s lawsuit against OpenAI. It highlighted legal doctrines that may support his claim that OpenAI and Microsoft engaged in anticompetitive practices.
The FTC is examining whether OpenAI’s transition to a for-profit model harms market competition. If regulators find merit in Musk’s claims, further investigations could follow. This could impact OpenAI’s structure and Microsoft’s AI dominance.
What’s Next for Musk and OpenAI?
Musk’s battle with OpenAI is not over. His failed bid is just one part of a long-standing feud. Will he make another attempt? Given his history, it is possible. OpenAI, on the other hand, may face more legal challenges from Musk. With both OpenAI and xAI competing for dominance, the AI industry will be watching closely. One thing is certain—this power struggle is far from over.
