Elon Musk’s $97.4 Billion OpenAI Acquisition Bid: What It Means for the Future of AI

On February 10, 2025, a consortium led by Elon Musk made an unsolicited $97.4 billion offer to acquire OpenAI’s nonprofit governance entity. This was Musk’s latest attempt to reshape OpenAI’s trajectory, as he has been openly critical of how the organisation has evolved.

His primary concerns include:

• OpenAI’s shift from nonprofit to for-profit: Musk argues that OpenAI’s partnership with Microsoft and its increasing commercialization go against its founding principles.
• AI safety and ethical concerns: He believes OpenAI is moving too fast in AI development without proper safeguards, potentially leading to unchecked risks.
• A lack of transparency: Musk has criticized OpenAI for limiting public access to research and keeping its most advanced AI models proprietary.

Musk’s proposal aimed to restore OpenAI to its original vision, ensuring that artificial intelligence remains open-source and primarily focused on benefiting society rather than corporate shareholders.

However, OpenAI’s board unanimously rejected the offer, stating that the organisation is not for sale and reaffirming its commitment to independent AI research.

OpenAI, led by CEO Sam Altman, responded firmly to Musk’s bid, making it clear that the company has no intention of handing over control.

In a statement, OpenAI’s board emphasised that:

• The company remains committed to its mission of ensuring that artificial intelligence benefits all of humanity.
• Outside acquisitions contradict OpenAI’s governance structure, which was designed to prevent AI from being controlled by any single entity.
• Musk’s bid undervalued OpenAI, as its market valuation now exceeds $100 billion following its successful commercial AI deployments.

Altman has also stressed that OpenAI’s strategic partnerships, including those with Microsoft and other investors, are necessary to fund and advance AI research at the scale required to compete with rivals such as Google DeepMind and Anthropic.

Musk’s bid follows a series of legal disputes with OpenAI.

• In 2024, Musk sued OpenAI, Altman, and OpenAI President Greg Brockman, alleging they had abandoned OpenAI’s nonprofit mission to pursue financial gains.
• He later expanded the lawsuit to include Microsoft, claiming that the tech giant’s deep financial ties to OpenAI compromise the organization’s independence.
• Although Musk initially dropped the lawsuit, he revived it in August 2024, escalating tensions between him and OpenAI leadership.

This ongoing legal battle suggests that Musk’s acquisition bid was not just a business move—it was part of a larger effort to regain influence over OpenAI and reshape the future of AI development.

Musk’s acquisition bid—and OpenAI’s rejection—highlight some of the biggest issues facing AI today:

• Corporate Control vs. Open Development – Should AI research be controlled by private entities, or should it remain accessible to the public?
• Ethical Concerns About AI Advancements – With AI growing more powerful, is OpenAI prioritizing safety, or is Musk right to call for more regulation?
• The Battle for AI Leadership – OpenAI is a frontrunner in AI development, but Musk’s involvement with his own AI venture, xAI, suggests he’s positioning himself as a competitor rather than an ally.

While OpenAI continues to push forward with its research, Musk’s actions signal that AI governance debates are far from settled. His bid may have been rejected, but it has reignited crucial discussions about who controls the future of artificial intelligence.