Elon Musk Offers $97.4 Billion to Acquire OpenAI

Elon Musk is leading an investment group in a bid to acquire OpenAI, the nonprofit behind ChatGPT, for a staggering $97.4 billion.

This move marks the latest development in Musk’s ongoing feud with OpenAI chief Sam Altman.

according to AMusk’s attorney, Marc Toberoff, submitted the bid to OpenAI’s board of directors.

However, Altman responded with a sarcastic post on X (formerly Twitter), saying, “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk, who acquired Twitter for $44 billion in 2022, simply replied, “Swindler.”

Musk co-founded OpenAI in 2015 but left in 2018. He has since launched his own generative AI startup, xAI, in 2023. OpenAI is reportedly transitioning into a for-profit structure, with plans to become a Delaware Public Benefit Corporation.

The acquisition bid is likely to face significant scrutiny, given OpenAI’s valuation as one of the world’s highest-valued startups. Despite its valuation, OpenAI reportedly loses money due to the high costs of developing its technology.

In a related development, Trump announced a $500 billion investment in AI infrastructure, led by Softbank, Oracle, and OpenAI, in January. However, Musk cast doubt on the project, stating that the promised funds were not actually available.