Elon Musk-led group offers $97.4 billion to acquire OpenAI, WSJ reports

Elon Musk and his group bid $97.4B for OpenAI control, aiming to restore its open-source, nonprofit mission.

A consortium led by Elon Musk has made a $97.4 billion offer to acquire OpenAI’s controlling nonprofit entity, according to The Wall Street Journal.

The bid intensifies the ongoing battle between Musk and OpenAI CEO Sam Altman over the company's future direction.

Musk, who co-founded OpenAI in 2015 but left before its rapid growth, has been a vocal critic of its shift toward a for-profit model. His legal action against OpenAI and Altman alleges that the organization was initially established to develop AI for the benefit of humanity but is now prioritizing commercial gains.

Musk’s AI startup, xAI, is backing the bid, and a potential merger with OpenAI is reportedly being considered. His attorney, Marc Toberoff, submitted the proposal to OpenAI’s board on Monday. “It's time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk stated, per WSJ.

Tensions between Musk and OpenAI escalated further after the AI company announced Stargate, a $500 billion AI initiative, at the White House. Musk questioned the funding viability of the ambitious project.

Neither OpenAI, Musk, nor OpenAI’s key investor, Microsoft, have commented on the bid. The move could reshape the AI landscape, potentially putting OpenAI under Musk’s leadership while reigniting debates over AI commercialization and ethical development.