Sam Altman Rejects Elon Musk’s $97.4 Billion Bid, Escalating AI Power Struggle
Specialty Network SLLC – The rivalry between OpenAI CEO Sam Altman and Elon Musk has taken another dramatic turn. OpenAI, the company behind ChatGPT, has firmly rejected Musk’s $97.4 billion acquisition bid, reinforcing its stance that it is not for sale. This decision intensifies the ongoing battle for control over the future of artificial intelligence.
Musk, who co-founded OpenAI but left in 2018, has criticized the company’s shift from a nonprofit to a for-profit entity. His latest offer, backed by Valor Equity Partners, Baron Capital, and Hollywood investor Ari Emanuel, aimed to steer OpenAI back to its original mission. However, OpenAI’s leadership dismissed the bid, questioning its legitimacy and reaffirming their commitment to AGI (artificial general intelligence) for public benefit.
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OpenAI’s leadership swiftly dismissed Musk’s offer, making it clear that the company has no interest in being acquired. In a statement on X (formerly Twitter), OpenAI Chairman Bret Taylor emphasized that the organization remains focused on advancing AI for humanity, rather than serving the interests of a single wealthy investor.
Musk’s proposal appeared to be an attempt to regain control over the company he helped create. However, OpenAI views his bid as an effort to disrupt a competitor rather than a genuine acquisition attempt. The board’s response made it clear that they see Musk’s involvement as a potential threat rather than a benefit to the company’s long-term mission.
Musk has spent years criticizing OpenAI’s direction, accusing it of prioritizing corporate profit over open-source AI development. His frustration escalated into a lawsuit against OpenAI CEO Sam Altman, and its largest backer, Microsoft, filed in August 2023. The lawsuit claims that OpenAI has strayed from its founding principles, shifting from an organization dedicated to AI for public good to a company aligned with Big Tech interests.
After Altman rejected Musk’s bid with a simple “No, thank you”, Musk fired back on X, calling him a “swindler.” The conflict escalated further when Musk’s legal team submitted new court documents. They argued that OpenAI’s corporate restructuring would primarily benefit board members and investors, rather than the broader public.
OpenAI recently announced plans to transition into a public benefit corporation, a move designed to attract larger investments while maintaining its long-term mission. The restructuring aims to balance profitability with ethical AI development, ensuring that AI advancements continue serving humanity.
However, Musk and his backers see this transition as a betrayal of OpenAI’s nonprofit origins. His legal team stated that they would withdraw their bid if OpenAI abandoned its plans for a for-profit model. OpenAI’s leadership responded by dismissing Musk’s concerns, stating that his bid was never serious to begin with.
The Altman-Musk dispute goes beyond personal differences—it highlights a fundamental debate about AI’s future. Musk supports open-source, decentralized AI, while Altman believes corporate backing is necessary to scale AI advancements and secure funding.
This power struggle raises critical questions:
For now, OpenAI continues its independent AI development, while Musk’s xAI startup focuses on building rival AI models. Whether Musk will attempt another takeover, escalate his lawsuit, or pursue alternative AI ventures remains uncertain.
Musk’s failed bid for OpenAI adds another layer to the battle for AI supremacy. With billions of dollars, legal conflicts, and technological control at stake, neither Musk nor Altman appears ready to back down.
This feud will likely shape how AI is funded, developed, and governed for years to come. The AI industry is evolving rapidly, and this power struggle could determine whether AI remains a tool for the public good or falls under corporate dominance.
One thing is certain: the fight for AI control is just beginning.
