Elon Musk Offers $97.4 Billion for OpenAI, Rejected by Sam Altman

OpenAI CEO Sam Altman

OpenAI CEO Sam Altman rejected an unsolicited takeover bid from a group of investors led by Elon Musk, who offered $97.4 billion to acquire the nonprofit overseeing OpenAI.

The Wall Street Journal first reported on the offer, which would have significantly reduced OpenAI’s current valuation.

According to CNBC, SoftBank is in discussions to invest $40 billion in OpenAI, valuing the company at $260 billion.

Responding to Musk’s offer on X, the platform formerly known as Twitter, Altman wrote: ''no thank you, but we will buy Twitter for $9.74 billion if you want.''

Musk quickly fired back, branding Altman a ''swindler.''

Musk and Altman co-founded OpenAI as a nonprofit in 2015, but Musk later parted ways due to disagreements over the company’s direction.

Since then, Altman has aligned OpenAI with Microsoft (MSFT), which has invested billions, securing access to OpenAI’s AI models while serving as its cloud computing provider.

Currently, Altman is working to transition OpenAI into a for-profit entity, a move Musk is attempting to block through legal action. Musk’s lawsuit argues that his original $45 million donation was predicated on OpenAI remaining a nonprofit.

Corporate law specialists highlight that OpenAI is legally required to secure fair market value for its assets. Musk’s legal team urged California’s attorney general in January to ensure OpenAI and Microsoft do not devalue these assets, as reported by The Wall Street Journal.

no thank you but we will buy twitter for $9.74 billion if you want

— Sam Altman (@sama) February 10, 2025

Musk’s $97.4 billion bid, if legitimate, could serve as a benchmark to establish OpenAI’s worth. However, legal analysts note that factors such as OpenAI’s unpredictable growth, substantial debt, unique business model, and ongoing litigation could create significant valuation challenges.

Musk also operates xAI, a competing AI firm.

This is not the first time Musk and Altman have clashed publicly. Previously, Musk claimed on X that OpenAI, SoftBank, and Oracle lacked the $500 billion they had committed to investing in their large-scale Stargate Project to construct data centers across the U.S.

Altman countered by asserting that Musk was mistaken and invited him to visit a facility currently being built in Texas.