Sam Altman rejects Elon Musk’s $97.4 Billion offer to buy OpenAI

Sam Altman, the Chief Executive Officer of OpenAI, has turned down a $97.4 billion offer from a group of investors led by Elon Musk to buy the non-profit organization that oversees the AI company.

According to The Wall Street Journal, Musk’s attorney, Marc Toberoff, submitted the unsolicited bid to OpenAI’s board on Monday. In response, Altman dismissed the offer with a post on Musk’s X platform, saying, “No thank you, but we will buy Twitter for $9.74 billion if you want.”

OpenAI declined to comment on the matter, while Toberoff has yet to respond to requests for clarification.

Musk’s Investors and AI Takeover Plans

The bid was reportedly backed by Musk’s AI startup, xAI, with the possibility of a merger between xAI and OpenAI if the deal succeeded. Other investors involved in the offer include Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, 8VC (a venture firm led by Palantir co-founder Joe Lonsdale), and Ari Emanuel’s investment fund. While Lonsdale declined to comment, the other investors did not immediately respond.

Musk and Altman have been at odds for years over OpenAI’s direction. Musk, who co-founded OpenAI with Altman in 2015, has repeatedly criticized the company for shifting from its non-profit roots to a for-profit entity, accusing it of abandoning its original mission of AI openness and safety.

Legal Battle Over OpenAI’s Microsoft Partnership

Musk has taken legal action against OpenAI, alleging that its partnership with Microsoft creates an unfair monopoly and is designed to block competition, including his own AI company, xAI. In a revised lawsuit, Musk expanded his claims from 15 to 26, increasing the complaint from 83 to 107 pages.

Microsoft’s $13 billion investment in OpenAI has also drawn scrutiny from the U.S. Federal Trade Commission, which fears the tech giant’s growing dominance in the AI industry.

SoftBank’s Counter Move

Meanwhile, Japanese investment firm SoftBank is reportedly in talks to invest as much as $25 billion in OpenAI, a deal that would make it the company’s largest financial backer. Sources also told CNBC that SoftBank is nearing a separate $40 billion investment in OpenAI at a $260 billion valuation.

In response to OpenAI’s growing influence, Musk is pushing for the company to return to its original mission. In a statement provided to The Wall Street Journal, he said, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”