Sam Altman Rejects Elon Musk’s $97.4 Billion OpenAI Bid

10 February, 2025 – The ongoing dispute between technological billionaires Sam Altman and Elon Musk has reached new heights, as CEO OpenAI has rejected Musk’s $97.4 billion offer to acquire the artificial intelligence plant. Musk, along with a consortium of investors, intended to take control of OpenAI and direct it to its original non-profit mission. However, Altman did not waste time rejecting the offer, intensifying tensions between the two former co-founders.

What was Musk’s offer to consult OpenAI?

According to The Wall Street Journal, Musk and a group of investors, supported by companies such as Equity Partners, Baron Capital, Atreides Management, Vy Capital and 8VC, proposed a $97.4 billion take of OpenAI’s non-profit arm. This movement has been positioned as a way to restore OpenAI to what Musk believes to be his original goal: an open and secure AI research organization. In a statement shared by his lawyer Marc Toberoff, Musk said:

“It is time for OpenAI to return to the open source force, focused on security forever. We will ensure that this happens.”

Despite this incredible offer, Altman hastened to reject it, responding on Musk’s social platform, X, with a strong rebuttal:

“No thanks, but we will buy Twitter for $9.74 billion if you want.”

Why did Altman reject Musk’s offer?

Altman’s rejection is more than a financial decision, it’s a statement of intent. Since Musk’s departure from OpenAI in 2018, the company has moved from a not-for-profit AI research laboratory to a not-for-profit entity, forming deep financial and strategic relationships with Microsoft. Accepting Musk’s offer could have derailed OpenAI’s current trajectory, which includes the development of advanced AI models with the support of the company.

In addition, the proposal could complicate the transition from OpenAI to a private company. According to the New York Times, to be fully commercial, OpenAI must purchase non-profit assets at fair market value. Musk’s high-profile offer effectively increases this assessment, which could make it difficult for OpenAI to justify a lower price in regulatory files.

How is this legal battle between Tie Into Musk and OpenAI going?

Musk’s attempt to purchase OpenAI comes in the middle of a continuous legal battle between him and AI. Last year, Musk sued OpenAI in the state and federal courts, alleging that the company had departed from its original investigation mission for public benefit. He argued that OpenAI’s close ties with Microsoft contradicted his founding vision.

District Judge Yvonne González Rogers, who oversees the case, has not yet ruled out Musk’s request to block OpenAI’s transition to a profit model. However, it acknowledged that the dispute raised legitimate concerns, stating:

It is plausible that what Mr Musk says is true. We’ll find out. He’ll sit on the stand. “

What are the consequences of Musk’s submission?

The fall of the offer rejected by Musk could have considerable consequences. If OpenAI progresses with its transition to a for-profit entity, it can be further reviewed by regulators and shareholders, especially as Musk continues to conduct a competitive bidding process.

In addition, this offer highlights the broader battle over the future of AI. With companies like OpenAI, xAI, and Google’s DeepMind races to develop increasingly powerful models, ownership and control over AI research institutes have become a high performance game. Musk’s insistence on OpenAI contrasts strongly with Altman’s vision of a highly controlled AI ecosystem supported by business associations.

And then what about OpenAI and Musk?

For now, OpenAI seems to be attached to its weapons, rejecting Musk’s offer and progressing with his private transition. However, Musk’s persistent legal challenges and financial influence could still create obstacles for the Altman and OpenAI Council.

Meanwhile, the departure of Musk, xAI, continues to grow, developing models that seek to compete directly with OpenAI’s ChatGPT. As the AI landscape evolves, the confrontation between Musk and Altman will probably remain a decisive history in the technological world.