Elon Musk is once again making headlines with an audacious $97.4 billion bid to take over OpenAI, the company he co-founded in 2015 but later abandoned. The offer, backed by a consortium including his AI startup xAI, has reignited the long-standing feud between Musk and OpenAI’s CEO, Sam Altman.
Altman’s response? A sharp, sarcastic jab on X (formerly Twitter):
“No thank you, but we will buy Twitter for $9.74 billion if you want.”
This battle is not just about corporate control—it’s about power, influence, and Musk’s lingering frustration with OpenAI’s transformation into a profit-driven giant. But does Musk’s latest move have any real chance of success, or is this just another chapter in his relentless, and at times, self-destructive, quest for dominance?
The Musk-Altman Feud: A Long, Bitter Rivalry
At its core, Musk’s bid is personal. He helped launch OpenAI as a nonprofit with the noble goal of developing AI for the benefit of humanity. But when OpenAI pivoted into a for-profit juggernaut, partnering with Microsoft and amassing billions in funding, Musk felt betrayed.
His response? Lawsuits, accusations, and the creation of xAI, his own AI startup, to compete with OpenAI.
The tensions between Musk and Altman have escalated dramatically in the past year. Musk sued OpenAI, claiming the company violated its founding mission by prioritizing profit over safety. He slammed Altman’s $500 billion AI project announced under Donald Trump’s administration. And now, he’s making a near $100 billion bid to seize control of the company he believes has lost its way.
But is this a serious offer, or just another high-stakes tantrum?
Can Musk Actually Buy OpenAI? (Spoiler: Probably Not)
Despite the jaw-dropping price tag, Musk’s bid faces massive hurdles.
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OpenAI’s Complex Structure:
- OpenAI is controlled by a nonprofit board, which exists to ensure the company’s mission remains focused on ethical AI development.
- The board has no legal obligation to accept Musk’s bid—even if it offers massive financial gains.
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Regulatory Scrutiny:
- Given Musk’s deep ties to Tesla, SpaceX, and now xAI, regulators would likely scrutinize any merger for antitrust violations.
- The U.S. government has already expressed concerns about AI monopolies—Musk swallowing OpenAI could trigger significant legal roadblocks.
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Microsoft’s Stake:
- Microsoft, which has invested billions into OpenAI, would likely oppose any Musk takeover that threatens its influence.
- Would Satya Nadella allow Musk to derail his company’s most important AI partnership? Highly doubtful.
The Real Motivation Behind Musk’s Move
If Musk knows his bid is unlikely to succeed, then why make it?
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A Tactical Disruption:
- By making a public takeover bid, Musk undermines OpenAI’s credibility and creates uncertainty for investors, employees, and partners.
- This could benefit his own company, xAI, by slowing down OpenAI’s momentum.
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An Ego Play:
- Musk thrives on drama and disruption. A headline-grabbing bid reinforces his image as the AI industry's ultimate power player.
- It also allows him to control the narrative—instead of being the AI outsider, he’s positioning himself as the rightful savior of OpenAI.
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Pressure on OpenAI’s Board:
- If OpenAI rejects his offer, they’ll need to justify why.
- This forces OpenAI to publicly defend its direction, potentially exposing weaknesses in its governance.
Altman’s Response: Mockery Over Negotiation
Sam Altman’s reaction—joking about buying Twitter for $9.74 billion—was a calculated insult.
Instead of engaging with Musk’s offer, Altman mocked him by referencing Musk’s troubled Twitter acquisition. It’s a clear sign that he sees Musk’s bid as unserious, or worse, as an act of desperation from a rival who is struggling to keep up.
For OpenAI, the message is clear:
They’re not for sale. Not to Musk. Not for $97.4 billion. Not ever.
Final Verdict: Musk’s Bid Won’t Succeed, But the Battle Isn’t Over
Elon Musk’s attempt to seize OpenAI is highly unlikely to succeed, but it achieves something else—it keeps the feud alive and ensures he remains a dominant voice in the AI world.
Even if Musk doesn’t get OpenAI, his relentless attacks and competitive efforts through xAI ensure that the battle for AI supremacy is far from over.
The real question is: Will Musk’s obsession with OpenAI drive him to build something even bigger—or will it just be another expensive distraction?