Elon Musk’s Consortium Bids $97.4 Billion for Control of OpenAI

On 10 February 2025, a consortium led by Elon Musk submitted a $97.4 billion bid to acquire the non-profit organisation that controls OpenAI, the developer of ChatGPT.

This move intensifies the ongoing conflict between Musk and OpenAI CEO Sam Altman regarding the company’s future direction.

Musk co-founded OpenAI with Altman in 2015 as a non-profit but departed before the company gained prominence. In 2023, he established a competing AI start-up, xAI. Musk has been critical of OpenAI’s transition towards a for-profit model, expressing concerns that it deviates from the organisation’s original mission of developing AI for the benefit of humanity.

In response to Musk’s bid, Altman promptly posted on X (formerly Twitter): “No, thank you, but we will buy Twitter for $9.74 billion if you want,” referencing Musk’s 2022 acquisition of the platform.

Also Read: Non-Profit Mission: Elon Musk Files Lawsuit Against OpenAI

The consortium supporting Musk’s bid includes his AI start-up xAI, Baron Capital Group, Valor Management, Atreides Management, Vy Fund III, Emanuel Capital Management, and Eight Partners. According to The Wall Street Journal, xAI could merge with OpenAI following a successful deal.

This development adds complexity to OpenAI’s ongoing efforts to transition from a non-profit to a for-profit entity, a move it argues is necessary to secure the capital required for developing advanced AI models. Musk has previously sued OpenAI, Altman, and others, alleging that they violated contractual provisions by prioritising profit over the public good.