In an unexpected twist in the AI world, Elon Musk, the tech billionaire, has reportedly made a bid to take control of OpenAI, the nonprofit organization behind the revolutionary AI model, ChatGPT. The proposal, valued at a staggering $97.4 billion, has raised eyebrows in the tech community, leaving both OpenAI’s board and Musk’s team in a tense standoff. But despite the bold move, sources say OpenAI’s board has yet to receive the formal bid, casting doubt on the future of this high-profile acquisition attempt.
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The Bid: What’s at Stake?
On February 11, 2025, news broke that Musk, through a group of investors, had attempted to make a formal offer to acquire OpenAI’s assets. However, the OpenAI board has not formally received the proposal. A source familiar with the situation told Reuters that Musk’s team had sent the bid to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz—a major law firm. This raised questions about whether OpenAI’s CEO, Sam Altman, was withholding the offer from the rest of the board.
Musk’s lawyer, Marc Toberoff, stated that the bid was delivered by email, attached to a “four-page Letter of Intent” outlining the terms of the takeover. This letter, according to Toberoff, was addressed to the OpenAI board and signed by Musk and his group of investors. However, it is still unclear whether the offer has been officially reviewed by OpenAI’s leadership or discussed among board members.
Sam Altman’s Response: OpenAI Is Not for Sale
Sam Altman, the CEO of OpenAI, wasted no time addressing the bid. In a statement, Altman firmly rejected Musk’s offer, emphasizing that OpenAI is not for sale. During an AI summit in Paris on February 11, Altman called Musk’s attempt “ridiculous” and a “tactic” to interfere with OpenAI’s mission. He said:
“The company is not for sale.
Altman’s stance reflects the deep philosophical and strategic divide between him and Musk, which has been evident for years. Musk co-founded OpenAI in 2015 with the vision of promoting safe and beneficial AI for the public good. However, Musk left the company in 2018 after disagreements over OpenAI’s direction and funding models. Since then, Musk has become a vocal critic of the organization’s shift towards commercial partnerships and its potential transformation into a for-profit entity.
Despite the rejection, Musk’s bid has added further fuel to an ongoing debate within the tech community about the future of OpenAI and its mission. Altman has made it clear that the company’s nonprofit status is critical to its goals and that any moves to sell the organization would be counterproductive to its broader mission.
Musk’s Motivations: A Bid for Control of AI
Musk’s interest in OpenAI is rooted in his desire to maintain control over the direction of artificial intelligence development. While Musk has been a staunch advocate for responsible AI, his recent venture, xAI, is a direct competitor to OpenAI’s advancements in the field. The timing of the bid—right as OpenAI is preparing to raise billions in a new funding round—suggests that Musk is looking to assert more influence over the future of AI technologies.
Musk’s lawyer, Marc Toberoff, framed the takeover attempt as a means to ensure that OpenAI’s assets and intellectual property remain aligned with the interests of the public rather than private shareholders. He also hinted that Musk may be attempting to block OpenAI’s transition to a for-profit entity. Musk has long been vocal about his concerns regarding the commercialization of AI, and this bid may reflect his desire to rein in what he perceives as the risks posed by unregulated corporate control of AI.
The Complicated Transition to For-Profit: What It Means for OpenAI’s Future
OpenAI is currently in the midst of a complicated transition from a nonprofit organization to a for-profit entity. This shift has been prompted by the increasing need for capital to fuel the development of cutting-edge AI technologies. In 2023, OpenAI disclosed plans to raise $40 billion to continue its research and expand its capabilities. However, this transition has faced criticism from some who argue that it undermines the company’s initial mission of ensuring that AI benefits the public good.
The move to a for-profit structure is particularly controversial due to OpenAI’s nonprofit roots, with some experts expressing concerns about whether the organization is truly adhering to its charitable purposes. Delaware Attorney General Kathy Jennings has even announced a review of OpenAI’s proposed changes, scrutinizing whether the company’s new direction conflicts with its original mission.
This debate has become even more heated in light of Musk’s bid. By offering a massive sum of money, Musk is essentially challenging the valuation of OpenAI’s assets, especially in the context of its charitable foundation. Legal experts have pointed out that Musk’s proposal could set a precedent for how nonprofit organizations should be valued when transitioning to for-profit ventures, raising significant questions about fair market value and potential conflicts of interest.
The Future of OpenAI: Will Musk’s Bid Change the Game?
While Altman’s rejection of Musk’s offer seems definitive, the situation is far from settled. OpenAI’s transition to a for-profit model remains a controversial and ongoing process. If Mu-sk’s bid were to succeed, it would likely reshape the AI landscape, consolidating control over one of the world’s most influential AI research organizations. However, Musk’s push for control is just one piece of a much larger puzzle involving regulatory scrutiny, ethical concerns, and the public’s trust in AI technology.
For now, OpenAI seems determined to maintain its course, emphasizing its commitment to its original mission and values. As AI technology continues to evolve at a rapid pace, the question of who controls it—whether for-profit companies, nonprofits, or even government entities—will remain a central issue in the global conversation surrounding artificial intelligence.
Conclusion: What Does This Mean for the Future of AI?
The $97.4 billion bid from Mu-sk and his investors is more than just a financial offer—it is a statement about the future of AI development, ethics, and control. While OpenAI’s board has rejected the offer for now, the underlying tensions between Musk and Altman will likely continue to influence the conversation around AI governance for years to come.
As the world watches, OpenAI remains at the center of the ongoing debate over the commercialization of artificial intelligence. Whether or not Mu-sk succeeds in his bid, the issue of how AI should be developed and regulated will continue to shape the trajectory of the industry. For now, it’s clear that OpenAI’s mission—to develop safe, beneficial AI for humanity—remains at the heart of the debate, with powerful forces like Musk working to steer its future in a direction they believe is best.
This ongoing saga will undoubtedly be a defining moment in the history of AI, with significant implications for how technology companies balance profit and public good in an increasingly automated world.
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