Elon Musk’s $97.4 Billion Bid for OpenAI Rejected with a Sarcastic Twist
Elon Musk, the billionaire entrepreneur behind Tesla, SpaceX, and xAI, has never been one to shy away from ambitious moves. His latest attempt to acquire OpenAI with an unsolicited $97.4 billion offer is no exception. However, the bid, which was submitted on February 10, 2025, was swiftly rejected by OpenAI CEO Sam Altman, who responded in a way that underscored the tension between the two tech moguls.
Musk, a co-founder of OpenAI, has been critical of the company in recent years, arguing that it has moved away from its original mission of prioritizing transparency and safety in artificial intelligence research. In a statement explaining his offer, Musk said, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.” His concern stems from OpenAI’s increasing commercialization, which he believes contradicts its founding principles.
Despite Musk’s concerns, OpenAI had no plans to sell, making the offer an unexpected and unsolicited move. Additionally, OpenAI’s nonprofit governance structure makes a takeover exceedingly difficult, as its leadership is not obligated to accept the highest financial offer.
Sam Altman, known for his sharp wit, responded to Musk’s bid in a single tweet that immediately went viral. Instead of a formal rejection, Altman posted, “No thank you, but we will buy Twitter for $9.74 billion if you want.” The response, dripping with sarcasm, referenced Musk’s turbulent ownership of X (formerly Twitter) and made it clear that OpenAI had no interest in Musk’s acquisition plans.
Musk, never one to back down, responded with a series of posts, calling Altman a “Swindler” before escalating to the nickname “Scam Altman.” The exchange fueled an already heated rivalry between the two, further highlighting their differing visions for AI development.
Unlike traditional corporations that must consider shareholder value when faced with a buyout offer, OpenAI operates under a unique structure. Initially founded as a nonprofit, the organization later formed a capped-profit subsidiary, but governance decisions still fall under the control of its nonprofit board. This structure prevents an outright sale for financial gain, making Musk’s bid more symbolic than practical.
Had OpenAI been a standard for-profit company, Musk’s offer might have resulted in a legal obligation for the board to maximize shareholder returns—a situation often referred to as a “Revlon moment.” However, because OpenAI’s governance is structured differently, its leadership retains full discretion over whether to consider such offers. This makes the possibility of a Musk-led takeover highly unlikely without major internal shifts.
The latest bid is just another development in the ongoing saga between Musk and OpenAI. Although Musk was an early supporter of OpenAI, he departed in 2018 and has since been a vocal critic of the company’s direction. In 2023, he even sued OpenAI, accusing it of abandoning its founding mission in favor of commercial interests. Meanwhile, Altman and OpenAI’s leadership assert that the company’s approach balances innovation with responsible AI deployment.
This back-and-forth illustrates the fierce competition shaping the AI landscape. With artificial intelligence playing an increasingly vital role in technology, power struggles between key industry leaders are inevitable. While Musk’s bid was quickly dismissed, the broader rivalry between him and OpenAI is far from over. Musk continues to push forward with xAI, ensuring that competition in the AI space will only intensify.
Musk’s failed acquisition attempt may not have changed OpenAI’s trajectory, but it serves as a reminder that the battle for AI dominance is still in full force. Whether this feud leads to further legal challenges or strategic maneuvers remains to be seen, but one thing is certain—neither Musk nor Altman is backing down anytime soon.
