OpenAI CEO Sam Altman has firmly rejected a $97.4 billion acquisition offer from a group of investors led by Elon Musk, intensifying the rivalry between the two tech leaders. Speaking at the Paris AI Action Summit, Altman dismissed Musk’s latest move, suggesting that the billionaire’s true intent is to slow OpenAI’s progress.
The offer, though substantial, raises questions about OpenAI’s future structure and its mission, as the company operates under a nonprofit umbrella while housing a highly valued for-profit entity.
Musk, a co-founder of OpenAI who parted ways with the organization in 2018, has been openly critical of Altman’s leadership. He has filed multiple lawsuits against OpenAI, accusing the company of prioritizing profit over its founding mission of responsible AI.
OpenAI, in turn, argues that Musk’s actions stem from frustration over losing influence in the company’s direction. In response to Musk’s criticism, Altman stated that OpenAI remains committed to its nonprofit roots.
Musk, now a direct competitor with his own AI company, x.AI, has long sought control over OpenAI’s trajectory. His bid, if taken seriously, could complicate OpenAI’s ongoing restructuring efforts. Since OpenAI’s nonprofit status exempts it from the typical fiduciary obligations of maximizing shareholder value, the board is not required for Musk’s offer.
However, the substantial valuation Musk proposed could influence how OpenAI approaches its for-profit expansion.
The ongoing feud between Altman and Musk has taken a personal turn, with Altman suggesting that Musk operates from a place of insecurity. Meanwhile, Musk’s increasing involvement in political and regulatory discussions, particularly with former President Donald Trump, has raised concerns about the potential influence he could wield in shaping AI.
With OpenAI’s valuation nearing $100 billion, the company’s next steps will be crucial. Musk’s offer may have raised the stakes, but OpenAI appears determined to remain independent.
