Elon Musk offers this huge amount to buy ChatGPT maker OpenAI ...
The latest development marks Musk's latest challenge to OpenAI, an organization he helped establish nearly a decade ago. A group of investors led by CEO of Tesla and SpaceX Elon Musk made a USD 97.4 billion bid to acquire the assets of OpenAI, as reported by Srishty Choudhury on Feb 11, 2025.
Details of the Bid
In response to the bid, OpenAI CEO Sam Altman took a jibe at the offer on X (formerly Twitter), stating, "No thank you but we will buy Twitter for $9.74 billion if you want." The consortium that Musk is leading includes Vy Capital and Xai, Musk's artificial intelligence company, as well as Hollywood power broker Ari Emanuel and other investors. The Wall Street Journal had initially reported news of the offer.
The New York Times reported citing a person familiar with OpenAI's potential response that the company has not yet seen Musk's bid. This unsolicited offer could potentially disrupt OpenAI's efforts to finalize a USD 40 billion funding deal, significantly increasing the company's valuation from just four months ago.
Valuation and Impact
The new funding round, led by the Japanese conglomerate SoftBank, is expected to value OpenAI at USD 300 billion, according to sources familiar with the deal. If completed, this deal would position OpenAI among the most valuable private companies globally, alongside Musk's SpaceX and ByteDance, the parent company of TikTok.
Notably, Musk and Altman have been involved in disagreements for some time. Last year, Musk filed a lawsuit against OpenAI, accusing the organization of prioritizing profits over its initial mission of advancing AI for the benefit of humanity. A US federal judge recently stated that parts of Musk's lawsuit against OpenAI might proceed to trial, requiring Musk to testify in court.
Background and Feuds
Musk co-founded OpenAI with Altman in 2015 but later departed to establish xAI, a competing AI startup, in 2023. The ongoing disagreements between Musk and Altman have been evident, with recent public exchanges highlighting their differing views on AI development and governance.
These developments underscore the evolving landscape of AI technology and the competitive dynamics within the industry. Musk's substantial bid for OpenAI's assets has the potential to reshape the AI sector and elevate the company to unprecedented valuation levels.
