OpenAI CEO Sam Altman rejected a $97.4 billion takeover bid from Elon Musk and a consortium of investors. Altman counter-proposed that Musk purchase X instead.
The unsolicited bid aimed to steer OpenAI back towards its original, publicly beneficial, technological goals.
As first reported by The Wall Street Journal, the offer, submitted Monday to OpenAI’s board, challenges OpenAI’s shift to a profit-driven model.
“OpenAI needs to return to its open-source roots and prioritize safety for the common good,” Musk stated, according to his attorney, Marc Toberoff.
Altman rejected the offer, sarcastically suggesting Musk buy X for $9.74 billion. Musk responded by calling Altman a “swindler” and “Scam Altman.”
Musk co-founded OpenAI in 2015, investing around $45 million, but left the board in 2018 due to disagreements with Altman over strategy. Since then, he’s been critical of OpenAI’s commercialization and its close relationship with Microsoft.
Musk’s own AI venture, xAI, launched in 2023. It features Grok, a chatbot integrated with X (formerly Twitter), competing with OpenAI’s ChatGPT. Musk positions xAI as a rival to OpenAI and Google’s DeepMind, emphasizing truth and transparency in AI.
To boost U.S. competitiveness in AI globally, President Trump unveiled the Stargate project in January 2025. This initiative, involving OpenAI, Oracle, and SoftBank, plans to invest up to $500 billion in AI infrastructure over four years. Reports suggest SoftBank is nearing a $40 billion investment deal, valuing OpenAI at $260 billion.