OpenAI has just turned down a $97.4 billion acquisition offer from a consortium of investors led by Elon Musk, reinforcing its independence as a leader in artificial intelligence.
Musk's attorney Marc Toberoff confirmed that the bid, which aimed to acquire "all assets" of OpenAI, was submitted to the company's board on Monday.
OpenAI CEO Sam Altman responded to the bid on Musk's social media platform X.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
The offer comes amid a longstanding dispute between Musk and Altman over the company's direction. The two co-founded OpenAI in 2015 as a nonprofit but parted ways in 2018.
Since then, OpenAI has transitioned into a for-profit model, a move Musk claims undermines its original mission of benefiting humanity.
Recently, the company has also faced a growing number of safety concerns.
Despite the rejection, OpenAI's board holds the power to evaluate offers, and a sale remains a possibility if a higher bid is proposed.
However, there are questions surrounding Musk's true intentions and whether the offer could be fueled by his personal grudge against Altman.
This adds an extra layer of complexity, demonstrating how leadership dynamics and personal relationships can significantly shape corporate decisions and potentially disrupt organizational focus.
The Future of OpenAI and AI Investment
OpenAI's valuation has soared in recent years, rising from $29 billion in early 2023 to $157 billion by the end of 2024.
Reports suggest that a new funding round could push that valuation even higher, potentially up to $300 billion.
Musk's bid, at $97.4 billion, is significantly lower than the company's latest valuation. However, his legal team has stated that the consortium would consider increasing the offer to match or exceed competing bids.
Meanwhile, OpenAI is expanding its AI infrastructure in partnership with Oracle, as well as a Japanese investment firm and an Emirati sovereign wealth fund.
Announcing The Stargate Project
— OpenAI (@OpenAI) January 21, 2025
The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure…
The initiative, dubbed "The Stargate Project," was announced at the White House by President Donald Trump, who described it as "the largest AI infrastructure project by far in history."
Despite Musk's role as a key advisor to Trump, he has questioned the project's financial backing, claiming it lacks the funds to fulfill its $500 billion investment pledge.
However, he has not provided evidence to support this claim.
As AI development accelerates, OpenAI continues to push forward, securing new partnerships and reinforcing its position as a dominant force in the industry.
Last week, the company launched a new rebrand to reflect its expansion.
