• Sam Altman dismissed Elon Musk's bid to acquire OpenAI's non-profit arm, labeling it a strategic move to destabilize the company.
  • In response, Altman made a bold $9.74B counteroffer to buy Musk's struggling platform, X (formerly Twitter).
  • The rejection highlights escalating tensions between Musk and OpenAI, rooted in competing visions for AI’s future.

The escalating rivalry between OpenAI CEO Sam Altman and Tesla CEO Elon Musk reached a boiling point as Altman rejected Musk’s $97.4 billion bid to acquire OpenAI’s non-profit arm.

Musk, who co-founded OpenAI in 2015 but left in 2018 over strategic disagreements, has accused the company of abandoning its open-source mission and monopolizing the AI space.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk declared.

The bid, submitted by Musk’s lawyer Marc Toberoff, was backed by Musk’s AI firm xAI and prominent investors, including Valor Equity Partners, 8VC, and Palantir co-founder Joe Lonsdale. Musk proposed merging OpenAI with xAI to create a dominant AI entity.

However, Altman publicly rebuffed the offer on X (formerly Twitter), replying,

“No thank you, but we will buy Twitter for $9.74 billion if you want.”

This pointed remark referenced Musk’s $44 billion acquisition of Twitter, which has since suffered significant devaluation.

Altman also criticized Musk’s bid in an internal Slack message, calling it a calculated attempt to “weaken” OpenAI amidst its progress in generative AI.

“Our structure ensures that no individual can take control of OpenAI,” Altman told employees, emphasizing OpenAI’s independence.

The conflict underscores a broader power struggle in the AI sector. Musk has filed multiple lawsuits against OpenAI and Microsoft, accusing them of monopolistic practices. OpenAI, meanwhile, has been transforming into a profit-driven entity, attracting substantial investment from Microsoft and others.

This latest clash highlights not only Altman’s defiance but also the growing stakes in controlling the future of AI.

Edited by Harshajit Sarmah