Elon Musk is leading a group of investors in a bold move to acquire OpenAI, the company behind ChatGPT, for a staggering $97.4 billion, CNN reported on Monday.
Musk, who has a long-standing rivalry with OpenAI CEO Sam Altman, has taken legal action against both the company and its leadership, alleging that they have misrepresented OpenAI as a nonprofit. He argues that the company has deviated from its original mission by prioritizing profit over its founding principles.
OpenAI operates under a nonprofit structure that oversees OpenAI LP, a for-profit entity within the larger organization. This for-profit arm has rapidly propelled OpenAI’s valuation from virtually nothing to nearly $100 billion in just a few years—an achievement widely attributed to Altman’s leadership.
As first reported by the Wall Street Journal, Musk’s investment could grant him majority control of OpenAI, positioning it as a competitor to his own AI company, X.AI.
Altman responded to the bid with a post on X, saying, “No thank you but we will buy Twitter for $9.74 billion if you want.”
Musk, one of OpenAI’s co-founders in 2015, parted ways with the company after clashing over its shift toward for-profit ventures.
In late 2023, OpenAI was embroiled in an unusual boardroom conflict when its board initially ousted Altman, only to reinstate him shortly after. The company’s leadership has since been restructured, with former board members expressing concerns that OpenAI was advancing too quickly without sufficient safety measures.
Musk first sued OpenAI in June 2024 but later withdrew the lawsuit after the company published emails from its early days—messages that seemingly showed Musk acknowledging the necessity of generating significant revenue to support AI development. This revelation contradicted his legal claims that OpenAI was wrongfully prioritizing profit.
Undeterred, Musk filed a new lawsuit in August 2024, accusing OpenAI of recklessly pursuing artificial general intelligence for financial gain. He also alleged that the company was involved in racketeering.
OpenAI has countered Musk’s legal challenges by suggesting that his actions stem from frustration over being sidelined. Musk reportedly attempted to have Tesla acquire OpenAI in 2018, but when his proposal was rejected, he severed ties with the company.