Quick Read: Sam Altman swiftly rejected Elon Musk’s $97.4 billion bid to acquire OpenAI with a sharp and humorous response. Musk, aiming to block OpenAI’s shift to a for-profit model, faces strong opposition from its board and investors. Their ongoing feud has escalated into legal battles over AI’s future direction. Altman remains focused on OpenAI’s independent growth, reaffirming that the company is not for sale.
In a bold and witty response, OpenAI CEO Sam Altman rejected Elon Musk’s $97.4 billion bid to acquire OpenAI’s controlling nonprofit. This move highlights the growing divide between two of the most influential figures in artificial intelligence.
Altman took to X (formerly Twitter) to deliver his rejection with a humorous jab:
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
This remark underscores the ongoing friction between Altman and Musk, whose battle over AI’s future has played out across social media, courtrooms, and boardrooms.
Musk’s Bid and His Vision for OpenAI
Musk’s consortium—which includes his AI startup xAI, Baron Capital Group, and Emanuel Capital—made the offer in an attempt to prevent OpenAI from transitioning into a for-profit entity.
Musk, who co-founded OpenAI in 2015, has long argued that the company has strayed from its original mission of keeping AI development open-source and focused on public benefit.
However, Altman’s swift rejection made it clear that OpenAI’s leadership is not interested in selling.
“The board intends to make it clear it has no interest in Musk’s supposed bid,” Altman reportedly told OpenAI employees in an internal memo.
A Battle of Business and Philosophy
Musk and Altman’s differences have escalated beyond business strategy into a full-fledged legal battle. Last year, Musk sued OpenAI and Altman, claiming they had abandoned the organization’s initial commitment to prioritizing public interest over commercial gains.
Musk’s lawsuit aims to prevent OpenAI from becoming fully for-profit, insisting that artificial intelligence should be a public utility rather than a corporate asset. Altman, however, argues that advancing AI requires substantial investment, making OpenAI’s for-profit transition a necessary step.
“We are building AI that benefits humanity, and that requires sustainable funding,” Altman stated in previous interviews.
Why Musk’s Takeover Faces Major Hurdles
Even if OpenAI’s board were open to negotiations, several obstacles make Musk’s bid unlikely to succeed:
1. Financial Hurdles
Musk’s estimated $165 billion net worth is largely tied to Tesla and SpaceX. To finance such a massive deal, he would likely need to sell Tesla shares, take out significant loans, or use his SpaceX stake as collateral.
2. Regulatory Challenges
Any acquisition attempt would face intense scrutiny from regulators in the U.S. and globally, especially given OpenAI’s partnership with Microsoft and its dominant position in the AI market.
3. Investor and Board Resistance
OpenAI’s current valuation stands at $157 billion. With major investors like Microsoft and SoftBank (which is reportedly considering a $40 billion funding round), a Musk-led takeover would face strong opposition.
Altman’s Leadership and OpenAI’s Future
As OpenAI cements itself as the leader in generative AI, Altman remains focused on innovation, expansion, and maintaining the company’s competitive edge. His swift rejection of Musk’s offer reinforces OpenAI’s commitment to forging its own path, despite criticism over its for-profit ambitions.
What’s Next for Musk and OpenAI?
Musk’s legal battle against OpenAI is ongoing, and tensions between him and Altman are unlikely to ease anytime soon. Whether Musk intensifies his takeover efforts or pivots to building his own AI company, xAI, remains to be seen.
