TLDR:
- Elon Musk and investors offered $97.4 billion to purchase OpenAI’s nonprofit entity, which Sam Altman immediately rejected with a counter-joke offer to buy Twitter for $9.74 billion
- The offer comes amid SoftBank’s reported plans to invest $40 billion in OpenAI at a $260 billion valuation, making Musk’s bid appear significantly lower
- Musk, who originally co-founded OpenAI with Altman in 2015, is currently suing to prevent OpenAI from becoming a for-profit business, citing his initial $45 million donation
- Altman dismissed the seriousness of Musk’s bid at the AI Action Summit in Paris, suggesting it’s an attempt to “slow down a competitor”
- The situation highlights ongoing tensions between the former co-founders, with Musk now running rival AI company xAI
A group of investors led by Elon Musk made an unsolicited offer of $97.4 billion to purchase the nonprofit entity that controls OpenAI, but CEO Sam Altman swiftly rejected the proposal on February 10, 2025.
The bid, first reported by the Wall Street Journal, comes at a time when OpenAI is reportedly in talks with SoftBank for a $40 billion investment at a valuation of $260 billion, making Musk’s offer appear lower than the company’s current market value.
Altman responded to the offer on X, formerly Twitter, with a counter-joke, stating: “no thank you, but we will buy Twitter for $9.74 billion if you want.” Musk, who purchased Twitter for $44 billion in 2022, responded by calling Altman a “swindler.”
Speaking at the AI Action Summit in Paris on February 11, Altman addressed the seriousness of Musk’s bid, stating “Not particularly.” He went further to suggest that the offer was an attempt to “slow down a competitor and catch up with his thing.”
The relationship between Musk and Altman dates back to 2015 when they co-founded OpenAI as a nonprofit organization. However, Musk later departed from the company due to disagreements about its future direction.
OpenAI has since formed a partnership with Microsoft, which has invested billions in the company. Microsoft serves as both an investor and cloud computing provider, gaining access to OpenAI’s AI models in the process.
The current dispute centers around OpenAI’s transition from a nonprofit to a for-profit entity. Musk is pursuing legal action to prevent this change, citing his initial $45 million donation that he claims was made with the understanding that OpenAI would remain a nonprofit organization.
Marc Toberoff, Musk’s attorney, stated upon submitting the offer: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”
Corporate law experts have pointed out that OpenAI must receive fair market value for its assets under legal requirements. In January, Musk’s legal team requested California’s attorney general to ensure this requirement is met, expressing concerns that OpenAI and Microsoft might have incentives to devalue the assets.
The valuation of OpenAI presents complex challenges for legal experts due to several factors, including unpredictable future growth, substantial debt, an unusual business structure, and ongoing litigation.
This offer marks another chapter in the public disagreements between the former partners. Previously, Musk challenged claims about the Stargate Project, a collaboration between OpenAI, SoftBank, and Oracle to build data centers across the United States, questioning their ability to fund the stated $500 billion investment.
Altman countered Musk’s skepticism by inviting him to visit a facility under construction in Texas, demonstrating the ongoing tension between the two tech leaders.
Musk now operates xAI, a company developing its own AI technology and competing directly with OpenAI through its chatbot called Grok.
The bid comes during a period of expansion for OpenAI, with the company actively pursuing additional investments and partnerships to further develop its AI technology.
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