Musk’s power grab: Wants OpenAI for $97B, but owners push back

A group of investors led by Elon Musk has made a staggering $97.4 billion bid to acquire OpenAI, escalating an ongoing legal fight between Musk and the artificial intelligence company he co-founded.

Musk, along with his AI startup xAI and several investment firms, aims to take control of OpenAI and return it to its original nonprofit mission, according to his attorney Marc Toberoff.

OpenAI CEO Rejects Musk’s Offer

Sam Altman, OpenAI’s CEO, wasted no time in rejecting the proposal. He responded on Musk’s social platform X with a sharp counteroffer: “No thank you, but we will buy Twitter for $9.74 billion if you want.”

Musk, who acquired Twitter for $44 billion in 2022 and rebranded it as X, has been in a long-standing feud with Altman over OpenAI’s direction since stepping down from its board in 2018.

Legal Battle Over OpenAI’s Direction

Musk initially backed OpenAI with a $45 million investment but later sued the company, claiming it had abandoned its nonprofit mission in favor of corporate profits. His legal team has sought a court order to prevent OpenAI from transitioning into a for-profit entity.

U.S. District Judge Yvonne Gonzalez Rogers has not yet ruled on Musk’s request but expressed skepticism about his claims. However, she acknowledged potential concerns over OpenAI’s relationship with Microsoft and stated that the case could proceed to trial as early as next year.

Investors Back Musk’s Takeover Attempt

The takeover bid is supported by several major investment firms, including Baron Capital Group, Valor Management, Atreides Management, Vy Fund, Emanuel Capital Management, and Eight Partners VC.

Musk’s legal team has also reached out to attorneys general in California and Delaware, arguing that any for-profit shift should be subject to competitive bidding to determine its fair market value.

Future of OpenAI Remains Uncertain

While Musk continues his aggressive push to reclaim OpenAI, the company remains focused on expanding its AI capabilities. With legal challenges and massive financial stakes involved, the battle over OpenAI’s future is far from over.