Elon Musk and a group of investors have made an ambitious $97.4 billion offer to acquire OpenAI, aiming to restore the company to its original nonprofit mission. However, OpenAI CEO Sam Altman has swiftly rejected the proposal, marking yet another chapter in the ongoing legal and ideological battle over the future of artificial intelligence.
Musk’s Offer: A Return to OpenAI’s Roots?
Musk’s proposed acquisition is not just about control—it’s a statement. OpenAI was originally founded as a nonprofit in 2015, with Musk as one of its key backers, alongside Altman and others. The vision was clear: develop AI in a way that benefits humanity without profit-driven motives.
However, in 2019, OpenAI transitioned into a “capped-profit” model, forming OpenAI LP, a move that Musk has vocally opposed. He argues that the organization has drifted from its altruistic origins, becoming more aligned with the financial interests of Microsoft and other investors. His $97.4 billion bid, if accepted, would have realigned OpenAI with its initial mission—at least in Musk’s eyes.
Sam Altman’s Firm Rejection
Despite the massive valuation, Altman has no interest in selling. His rejection of Musk’s offer signals confidence in OpenAI’s current trajectory. Under his leadership, OpenAI has evolved into a key player in the AI space, forming strategic partnerships—most notably with Microsoft, which has invested billions into the company.
For Altman, OpenAI’s transition to a profit-driven model was necessary to sustain the immense computing and research costs associated with developing advanced AI models like GPT-4 and GPT-5. A return to a purely nonprofit model, as Musk proposes, could risk limiting the company’s ability to compete with AI powerhouses like Google DeepMind and Anthropic.
Musk’s Lawsuit Against OpenAI
This bid comes amid Musk’s ongoing legal battle with OpenAI. In a lawsuit filed earlier in 2024, Musk accused OpenAI of abandoning its founding principles and becoming a “de facto closed-source subsidiary” of Microsoft. He contends that OpenAI’s partnership with Microsoft undermines the goal of making AI technology widely accessible for the benefit of humanity.
OpenAI has dismissed these claims, arguing that Musk was fully aware of the shift in the company’s structure and that he himself walked away from the organization in 2018. The legal battle, coupled with Musk’s buyout attempt, underscores a deeper conflict over the control and direction of AI development.
The Bigger Picture: The Future of AI Governance
Musk’s rejected bid raises important questions about the governance of artificial intelligence. Should AI research be led by nonprofit organizations focused solely on societal benefit, or do for-profit models ensure better funding, innovation, and scalability?
Altman’s stance suggests he believes the latter. OpenAI’s rapid advancements and dominance in the AI space have been largely fueled by private investment. But Musk and his supporters argue that this model prioritizes corporate interests over the broader goal of safe and ethical AI.
This ideological divide is at the heart of the debate surrounding AI’s future—one that will likely continue as technology advances and regulatory scrutiny intensifies.
Elon Musk’s $97.4 billion offer for OpenAI wasn’t just a business move—it was a challenge to the company’s current direction. With Altman rejecting the proposal outright, the battle over OpenAI’s future will now shift back to the courtroom, where Musk continues to push for a return to its original nonprofit mission.
As AI becomes more powerful and influential, the stakes in this debate couldn’t be higher. Whether AI should be driven by profit or altruism remains an open question—one that will shape the future of technology and society for years to come.