Altman rejects Musk $97.4bln OpenAI bid, makes 9.74bln X counteroffer
3 Min Read
The bid comes just months after Musk sued OpenAI, aiming to halt its shift to a for-profit model.
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This March 9, 2020, is a file photo of Tesla and SpaceX Chief Executive Officer Elon Musk speaking at the SATELLITE Conference and Exhibition in Washington. (AP)
Elon Musk is attempting to regain control of OpenAI, leading a consortium that has put forward a massive $97.4 billion offer to acquire the AI powerhouse. The bid comes just months after Musk sued OpenAI, aiming to halt its shift to a for-profit model.
However, OpenAI CEO Sam Altman swiftly dismissed the offer, intensifying the long-standing rivalry between the two tech leaders. Responding to Musk’s proposal, Altman fired back on X with a blunt "No, thank you," offering instead to buy Musk's X for $9.74 billion.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
According to Engadget, Altman’s response wasn’t just a rejection—it was a pointed dig at Musk, who famously purchased Twitter for $44 billion before rebranding it as X.
The escalating feud suggests that Altman has no intention of yielding to Musk’s offer, even if billions are on the table.
Musk’s lawsuit against OpenAI
Musk has frequently criticized OpenAI’s direction, particularly after the company announced its ambitious $500 billion "Stargate" project focused on advancing AI capabilities.
Back in May 2024, Musk publicly slammed OpenAI’s latest AI model, stating that it "made him cringe."
He has also voiced skepticism about OpenAI’s financial ability to execute such large-scale plans. At the time, Musk argued that OpenAI should return to being "an open-source, safety-focused force for good."
His lawsuit contends that OpenAI was originally founded as a nonprofit dedicated to benefiting humanity but has since pivoted to serve corporate interests. Musk, who co-founded OpenAI alongside Altman in 2015 but left before its rise as an AI leader, has since launched his own rival company, xAI.
Can Musk secure the funds?
Acquiring OpenAI would demand an enormous financial effort. The company’s most recent funding round valued it at $157 billion, making it one of the world’s most valuable private firms.
In January, reports suggested that SoftBank was considering leading a $40 billion investment round that could push OpenAI’s valuation to $300 billion.
Even as the world’s wealthiest individual, Musk still faces the challenge of raising that kind of capital. According to The Wall Street Journal, Musk personally extended the $97.4 billion offer to OpenAI, leaving questions about how he intends to finance the deal.
If successful, xAI—Musk’s AI startup—could potentially merge with OpenAI.
The road ahead for OpenAI
OpenAI is pressing ahead with its transition to a for-profit structure, arguing that attracting substantial investment is essential for staying competitive in the AI race.
Meanwhile, Microsoft, one of OpenAI’s largest investors, has remained silent on Musk’s bid. Given Microsoft’s deep financial ties to OpenAI, any acquisition attempt by Musk is likely to face resistance.
For now, Altman remains focused on OpenAI’s growth, predicting that AI costs will drop "by 10 times yearly."
Read more: Could Musk abuse his governmental position to target OpenAI?
