Elon Musk’s group bids $97.4 billion for OpenAI, complicating Sam Altman’s plans to transition it to a for-profit entity.

In Short

Elon Musk has made a $97.4 billion unsolicited bid for the nonprofit controlling OpenAI, complicating CEO Sam Altman’s plans to turn it into a for-profit entity. This bid intensifies the conflict between Musk and Altman over OpenAI’s future direction, with Musk advocating for a return to its open-source mission.

This offer intensifies the ongoing dispute between Musk and Altman regarding the future direction of OpenAI, the organisation behind ChatGPT. Musk advocates for a return to OpenAI’s initial open-source mission, while Altman aims to invest heavily in AI infrastructure through a project named Stargate.

Musk’s offer raises concerns over the valuation of the nonprofit during its transformation, potentially granting Musk significant influence over the new for-profit structure. Support for Musk’s bid comes from his AI company xAI and various investment firms.

Musk has also filed legal complaints, claiming OpenAI has strayed from its charitable roots by creating a for-profit subsidiary and collaborating with Microsoft. In response, OpenAI rejected Musk’s criticisms, asserting that the nonprofit will be fairly compensated.

Musk’s legal team is pushing for an appraisal of the charity’s assets as the shift to a for-profit model progresses, while OpenAI has plans to finalise this transition by late 2026, following substantial funding rounds.

Despite Musk’s influence and resources, challenges remain, including opposition from rival Meta Platforms and ongoing negotiations with Microsoft and others regarding equity in the new venture. Meanwhile, OpenAI is seeking further investments amid the uncertainty created by Musk’s bid.