Elon Musk Offers $97.4 Billion to Acquire OpenAI Amid Feud with Sam Altman

(CNN) — In a bold move that could reshape the artificial intelligence landscape, Elon Musk is spearheading a group of investors aiming to acquire OpenAI, the parent company of ChatGPT, for $97.4 billion.

Musk has had a longstanding dispute with OpenAI CEO Sam Altman and has filed multiple legal complaints, accusing the company and its leadership of falsely portraying OpenAI as a philanthropic organization. He argues that the company has strayed from its original mission by prioritizing profit over its founding principles.

OpenAI operates under a nonprofit umbrella, which oversees OpenAI LP, a for-profit entity within its structure. This for-profit division has rapidly transformed OpenAI from an obscure startup to a company valued at nearly $100 billion, with Altman widely credited for driving its success.

The Wall Street Journal first reported Musk’s potential investment, which, if successful, could grant him majority control of OpenAI—placing it in direct competition with his own AI company, X.AI.

Marc Toberoff, an attorney representing Musk’s investor group, emphasized their goal of restoring OpenAI’s original mission. “If Sam Altman and OpenAI’s board insist on transitioning into a fully for-profit corporation, the nonprofit must be fairly compensated for losing control over such a transformative technology,” Toberoff said in a statement. “OpenAI should return to being an open-source, safety-driven force for good. We will make sure that happens.”

Altman responded on X with a tongue-in-cheek remark: “No thank you, but we will buy Twitter for $9.74 billion if you want.”

Musk, who co-founded OpenAI in 2015, later parted ways with the company due to disagreements over its shift toward commercial AI development.

OpenAI was originally established to address concerns about artificial general intelligence (AGI) posing a potential risk to humanity. It created a board to oversee its projects and initially maintained transparency by making its code publicly available.

However, with major backers like Microsoft and venture capital firm Thrive Capital, OpenAI faces pressure to expand its business and generate returns for investors. In the fast-paced world of Silicon Valley, prioritizing rapid innovation often comes at the cost of stability. The challenge now lies in balancing growth with ethical AI development, particularly as AI-generated content continues to blur the line between reality and fabrication.