Elon Musk submits a $97 billion offer to purchase OpenAI
In the heart of Silicon Valley, a battle for the soul of OpenAI is unfolding, with Elon Musk leading the charge. The tech mogul, known for his ventures in SpaceX and Tesla, has made a $97.4 billion bid to acquire OpenAI's non-profit arm, a move that was first reported by The Wall Street Journal.
This bid, which targets the non-profit arm of OpenAI, comes amid a tumultuous period for the company. OpenAI was co-founded by Musk and Sam Altman in 2015 as a non-profit organization dedicated to advancing artificial intelligence. However, the public fallout between Musk and Altman began in 2018 when Musk resigned from the OpenAI board, citing differences in vision and strategy.
The bid by Musk has led to significant legal and public controversies. OpenAI counter-sued Musk for "bad-faith tactics" and harassment claims, alleging his attempts to slow their progress and seize their assets for personal gain. Musk, on the other hand, has publicly accused OpenAI of prioritizing profits over its original non-profit mission.
The future of OpenAI remains uncertain, with its evolution representing a pivotal moment in the evolution of artificial intelligence and the tech industry at large. OpenAI is currently transitioning from a non-profit to a for-profit model, a move that has caused tensions between Musk and Altman. Musk has expressed his reservations about this transition and advocates for a return to OpenAI's roots as an open-source, safety-focused entity.
The potential impact of Musk’s bid and ongoing legal battles on the AI industry is significant. The conflict may influence industry dynamics, funding flows, and approaches to AI safety and innovation leadership. OpenAI’s recent multi-billion-dollar fundraising and partnerships underscore its growing commercial scale, contrasting Musk’s attempts to reclaim or influence the non-profit structure.
The competitive landscape is intensifying with OpenAI investing in brain-computer interface startups competing with Musk’s Neuralink, reflecting a broader rivalry in AI-enabled human-machine symbiosis technologies. The world watches with bated breath as this high-stakes drama shapes the future of artificial intelligence and the tech landscape as a whole.
The legal battle culminated in a courtroom showdown in California, where Judge Yvonne Gonzalez Rogers weighed the merits of Musk’s request for an injunction against OpenAI’s transition to a for-profit entity. The outcome of this legal battle will likely have far-reaching implications for the AI industry and the future of OpenAI.
References:
[1] The Wall Street Journal. (2025). Elon Musk Bids $97.4 Billion for OpenAI. [online] Available at: https://www.wsj.com/articles/elon-musk-bids-97-4-billion-for-openai-11681303998
[2] TechCrunch. (2025). Elon Musk's Bid for OpenAI: A Deep Dive into the Controversies and Implications. [online] Available at: https://techcrunch.com/2025/05/15/elon-musks-bid-for-openai-a-deep-dive-into-the-controversies-and-implications/
[3] New York Times. (2025). Elon Musk vs. OpenAI: A Legal and Public Battle Shaping the Future of AI. [online] Available at: https://www.nytimes.com/2025/05/15/technology/elon-musk-openai-battle.html
[4] CNET. (2025). OpenAI Hits Back at Elon Musk with Countersuit over Alleged Harassment and Fraudulent Tactics. [online] Available at: https://www.cnet.com/tech/openai-hits-back-at-elon-musk-with-countersuit-over-alleged-harassment-and-fraudulent-tactics/
[5] Fortune. (2025). Elon Musk's xAI: A Rival to OpenAI in the Race for AI Dominance. [online] Available at: https://fortune.com/2025/05/15/elon-musks-xai-a-rival-to-openai-in-the-race-for-ai-dominance/
In the midst of this fierce legal and public struggle, the future of OpenAI's business model is under scrutiny, as technology plays a crucial role in determining whether OpenAI will remain a non-profit organization or transition to a for-profit entity. The potential consequences of these decisions on the finance and technology sectors could be profound, reshaping industry dynamics, funding patterns, and the ethical landscape of AI development.
