A consortium of investors, led by Elon Musk, has submitted a $97.4 billion bid to acquire OpenAI, the developer of ChatGPT. The offer, confirmed by Musk’s attorney Marc Toberoff, was formally presented to OpenAI’s board on Monday.
The bid marks the latest development in a long-standing dispute between Musk and OpenAI CEO Sam Altman over the company’s direction. Musk, co-founder of OpenAI, left the firm in 2018 and has since criticized its transition from a non-profit to a for-profit model. Altman, who has been restructuring the company, argues the shift is necessary to secure funding for AI development.
In response to the takeover bid, Altman dismissed the offer on Musk’s social media platform, X, posting: “no thank you but we will buy twitter for $9.74 billion if you want.”
Musk’s bid is backed by his AI company, xAI, along with private equity firms Baron Capital Group and Valor Management. “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens,” Musk stated.
The proposed acquisition offer is significantly lower than OpenAI’s latest valuation. In October 2024, the company was valued at $157 billion, and ongoing funding talks reportedly place its worth at $300 billion. Toberoff indicated the consortium is open to increasing its bid if necessary.
Meanwhile, OpenAI is partnering with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to develop AI infrastructure in the U.S. The $500 billion initiative, named The Stargate Project, was announced by President Donald Trump at the White House. Trump described it as “the largest AI infrastructure project by far in history,” emphasizing its role in keeping technological advancements within the U.S.
Musk, an advisor to Trump, has questioned the funding sources for the initiative, claiming it lacks the pledged financial backing but has not provided further details.
