The ongoing feud between Artificial Intelligence (AI) pioneers Elon Musk and Sam Altman has intensified, with Altman dismissively rejecting Musk’s $97.4 billion bid to acquire OpenAI‘s controlling nonprofit.
Mr Altman’s pointed response, delivered via X (formerly Twitter), was a humorous counter-offer: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
This exchange underscores the deepening rift between the two, whose disagreements over AI’s future have played out in courtrooms, social media, and boardrooms.
Mr Musk’s consortium, comprised of his AI startup xAI, Baron Capital Group, and Emanuel Capital, aimed to prevent OpenAI’s transition from a nonprofit to a for-profit structure.
Mr Musk, a co-founder of OpenAI in 2015, argues that the company has abandoned its original mission of open-source AI development for the public good.
However, Altman made it clear that OpenAI’s board is not interested in selling and remains committed to its own strategic vision for advancing AI capabilities.
In an internal memo to OpenAI employees, Altman reportedly stated, “The board intends to make it clear it has no interest in Musk’s supposed bid.”
The philosophical and business differences between Musk and Altman have escalated into a legal battle.
Mr Musk sued OpenAI and Altman last year, alleging they betrayed OpenAI’s original purpose by prioritizing commercial interests, particularly through its close partnership with Microsoft.
His legal challenge seeks to block OpenAI’s full transition to a for-profit structure, arguing that AI should remain a public utility.
Mr Altman has countered that scaling AI requires substantial investment, making OpenAI’s for-profit model a necessary evolution.
“We are building AI that benefits humanity, and that requires sustainable funding,” Altman has said in previous interviews.
Mr Musk’s bid faces significant obstacles, even if OpenAI were willing to negotiate.
Financing the deal would be challenging, requiring Musk, whose personal wealth is estimated at $165 billion (largely tied to Tesla and SpaceX), to sell Tesla shares, secure substantial loans, or leverage his SpaceX stake.
Furthermore, given OpenAI’s partnership with Microsoft and its growing dominance in the AI field, any acquisition attempt would face intense regulatory scrutiny in the U.S. and globally.
Finally, OpenAI’s investors, including Microsoft and SoftBank, which is considering a $40 billion funding round, would likely oppose a Musk-led takeover.
OpenAI was recently valued at $157 billion. With OpenAI now a leader in generative AI, Altman remains focused on expansion, innovation, and solidifying its position in the competitive AI landscape.
His swift rejection of Musk’s bid signals OpenAI’s determination to chart its own course, despite criticism of its for-profit ambitions.
The future remains uncertain. Musk’s legal battle against OpenAI continues, and tensions between him and Altman show no signs of abating.
Whether Musk escalates his takeover attempts or focuses on developing his own AI venture, xAI, remains to be seen. For now, Altman’s message is clear: OpenAI is not for sale.
