“No, thank you!”- Altman Turns Down Musk’s Offer to Buy OpenAI for $97.4bn

Elon Musk is reportedly leading an investment group that has submitted a staggering $97.4 billion bid for the nonprofit entity that controls OpenAI. According to a report by the US Wall Street Journal on Monday, the offer marks a new front in Musk’s long-running feud with OpenAI’s CEO, Sam Altman, whose company is best known for its ChatGPT technology.

Musk’s attorney, Marc Toberoff, confirmed that the bid was formally submitted to OpenAI’s board of directors. “We are pursuing an investment structure that we believe would unlock tremendous value and accelerate innovation in the AI space,” Toberoff reportedly said. However, the offer was met with a dismissive response on social media from Altman, who posted on X (formerly Twitter): “No thank you, but we will buy twitter for $9.74 billion if you want.” Musk wasted no time in replying to Altman’s remark, simply posting the word “Swindler,” a terse rebuke that quickly ignited heated debates among tech enthusiasts and industry insiders.

This dramatic exchange is just the latest chapter in the high-stakes rivalry between Elon Musk and Sam Altman—a feud that dates back to the early days of OpenAI. Musk, one of the co-founders of OpenAI in 2015, was instrumental in shaping the vision of the startup, which rapidly became the world’s leading AI company after his departure in 2018. Not one to shy away from competition, Musk launched his own generative AI startup, xAI, in 2023, positioning himself as a formidable rival to Altman’s OpenAI.

In a December blog post, OpenAI explained its unique structure, stating, “We created a bespoke structure: a for-profit, controlled by the non-profit, with a capped profit share for investors and employees.” This hybrid model was designed to balance the interests of shareholders, stakeholders, and the public—a model that has been credited with fueling the company’s rapid growth despite the high costs associated with cutting-edge technology. Nevertheless, the nonprofit that controls OpenAI remains one of the world’s most valuable yet financially challenged startups, owing largely to the significant expenditures required to develop its expensive AI technologies.

Musk’s $97.4 billion bid, if successful, could upend the current dynamics of the AI industry. Musk’s aggressive move is seen as an effort not only to challenge OpenAI’s dominance but also to consolidate his own position as a major player in the future of technology. Musk, who acquired Twitter (now rebranded as X) for $44 billion in 2022, has built a reputation for disrupting established industries. His foray into AI through xAI underscores his determination to influence a technology that is expected to revolutionize how people live and work.

The tension between Musk and Altman is compounded by their differing visions for the future of AI. Altman’s OpenAI continues to push the boundaries of generative AI with products like ChatGPT, which have transformed the landscape of digital communication and automation. Meanwhile, Musk’s efforts with xAI signal a desire to develop alternative models that could potentially shift market dynamics.

Adding another layer of complexity to the unfolding drama is the involvement of political figures in the high-stakes world of AI investments. Earlier this year, former U.S. President Donald Trump announced a major investment initiative—dubbed Stargate—that would channel at least $500 billion into building AI infrastructure in the United States, with participation from global giants like SoftBank and Oracle. Altman, SoftBank’s Masayoshi Son, and Oracle founder Larry Ellison were all present at the announcement. However, Musk quickly cast doubt on the project, asserting that the promised funds were not actually available.

Musk’s bold bid and his dismissive response to Altman’s offer highlight not only personal animosity but also a broader ideological clash. While Altman has steered OpenAI to become synonymous with innovation and ethical AI development, Musk’s approach—characterized by high-risk investments and aggressive competition—resonates with a faction of investors and technologists who believe that the pace of innovation demands bold moves.

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