Well, it seems that the unsolicited offer of $97.4 billion to acquire OpenAI wasn’t attractive to Sam Altman.
Sam Altman Rejects Elon Musk’s $97.4 Billion Bid to Acquire OpenAI. Yes, you heard right. In a dramatic turn of events, Elon Musk has made an unsolicited offer of $97.4 billion to acquire OpenAI, the artificial intelligence company he co-founded. However, Sam Altman, the current CEO of OpenAI, has firmly dismissed this bid, emphasizing that the company is not for sale. This move has reignited tensions between the two tech titans and raised serious questions about the future of AI governance.
Elon Musk’s Bold Move
On February 10, 2025, news broke that Elon Musk, backed by his AI venture xAI and private equity firm Valor Equity Partners, had proposed to purchase OpenAI. Musk’s stated intention was to return OpenAI to its original mission as an open-source, safety-focused organization. He expressed concerns that the company had deviated from its founding principles, shifting towards profit-driven motives.
Musk, who has long been a vocal critic of OpenAI’s evolution, argued that the organization was no longer aligned with the initial vision of developing AI for the public good. His bid sought to regain control and restructure OpenAI into an entity that prioritized transparency and ethical AI development.
Sam Altman’s Firm Response
In response, Sam Altman addressed OpenAI employees in an internal memo, making it clear that the board had no interest in Musk’s proposal. He emphasized that OpenAI’s governance structure was designed to prevent any single entity or individual from taking control. Altman also pointed out that Musk operates a competing AI company and suggested that his actions were aimed at undermining OpenAI’s progress rather than fostering its original mission.
According to Altman, OpenAI remains committed to advancing safe and beneficial artificial intelligence. He reassured employees and stakeholders that the company’s long-term goals align with its founding principles, albeit with necessary modifications to secure funding and drive innovation.
A History of Tension
As Sam Altman Rejects Elon Musk’s $97.4 Billion Bid to Acquire OpenAI. Let’s review the feud also. The relationship between Musk and Altman has been fraught with tension for years. Both were co-founders of OpenAI in 2015, but Musk left the board in 2018. Since his departure, Musk has been openly critical of OpenAI, repeatedly alleging that the company has abandoned its nonprofit, public-benefit mission.
Musk has even filed lawsuits against OpenAI, claiming that its transition to a for-profit model contradicts the organization’s original intent. His bid to acquire OpenAI is widely seen as an extension of this ongoing dispute. However, critics argue that Musk’s attempt to take over OpenAI might be more about power and influence in the AI industry rather than a genuine effort to course-correct the company.
OpenAI’s Evolution and Mission Shift
When OpenAI was first established, it operated as a nonprofit research lab dedicated to ensuring AI advancements benefited humanity. However, as the field of AI grew more competitive, OpenAI transitioned into a capped-profit model in 2019 to attract investors and secure funding for large-scale AI research.
This shift allowed OpenAI to develop groundbreaking models such as ChatGPT, DALL·E, and Codex, but it also drew criticism from those who believed it had compromised its original mission. With a current valuation of $157 billion, OpenAI has positioned itself as one of the leading AI research firms globally. The company is also in discussions for additional funding, which could increase its valuation to $300 billion.
Musk’s bid to buy OpenAI at $97.4 billion was considered aggressive, but many analysts believe it undervalues the company given its rapid growth and technological advancements.
Legal and Ethical Considerations
Musk’s acquisition attempt raises several legal and ethical concerns. As a nonprofit organization, OpenAI’s board has a fiduciary duty to act in the best interest of the public and its mission. Accepting Musk’s offer could be perceived as compromising these responsibilities for financial gain.
Additionally, Musk’s ownership of a rival AI company, xAI, presents a potential conflict of interest. Critics argue that allowing Musk to control OpenAI could stifle competition and limit AI transparency. Others fear that Musk’s hands-on leadership style might create instability within OpenAI’s research and development efforts.
Legal experts also point out that OpenAI’s governance model was explicitly designed to prevent such takeovers. The board structure and voting rights ensure that the company cannot be easily acquired or influenced by external entities, reinforcing Altman’s decision to reject Musk’s bid.
Public Exchanges and Social Media Feud
The drama between Musk and Altman has also spilled onto social media. Shortly after news of the bid surfaced, Altman posted on X (formerly Twitter), stating, “No thank you, but we will buy Twitter for $9.74 billion if you want.” The tongue-in-cheek response quickly went viral, adding fuel to the already heated dispute.
Musk, known for his unfiltered Twitter presence, retaliated by calling Altman a “swindler” and accusing OpenAI of being controlled by corporate greed. The public feud has drawn reactions from both industry leaders and AI researchers, further highlighting the high stakes involved in the AI arms race.
The Road Ahead for OpenAI
Despite the turmoil, Sam Altman remains steadfast in his vision for OpenAI. He has reassured investors, employees, and the broader AI community that the company will continue focusing on ethical AI development and scientific breakthroughs. OpenAI’s long-term goal remains to develop artificial general intelligence (AGI) that benefits all of humanity.
The rejection of Musk’s bid sends a strong message that OpenAI will not succumb to external pressures, no matter how financially tempting they may be. Altman has also hinted at expanding partnerships with tech giants like Microsoft and Google to further OpenAI’s mission.
What This Means for the AI Industry
This high-profile clash between two of the tech industry’s most influential figures has significant implications for the future of AI governance. It underscores the challenges of balancing profit motives with public responsibility and raises critical questions about AI transparency, corporate ethics, and long-term impact.
As AI continues to evolve, debates over who controls the technology and how it is developed will only intensify. Musk’s attempt to buy OpenAI may have been unsuccessful, but it signals a broader power struggle in the AI industry, with major players vying for dominance.
Conclusion
The rejection of Elon Musk’s $97.4 billion bid by Sam Altman and the OpenAI board marks a pivotal moment in the tech industry. It highlights the importance of maintaining organizational integrity and staying true to foundational principles, even in the face of lucrative offers.
As the AI landscape continues to evolve, this battle between two of the biggest names in tech serves as a reminder of the complex interplay between innovation, ethics, and corporate governance. Whether Musk will make another attempt to take over OpenAI remains to be seen, but one thing is certain—the AI industry is only just getting started.