Elon Musk and a group of investors offered $97.4 billion to OpenAI with the intention to buy the non-profit organisation. The comes after years of back and forth between Musk and Sam Altman. Musk co-founded OpenAI in 2015 but left in 2018 after disagreements over the company鈥檚 direction.
Musk thinks OpenAI moved away from its original mission of developing AI for the public good, and that they now only value profits. For this, he ended up suing the startup. Altman and OpenAI have dismissed Musk鈥檚 bid, with Altman responding on X, “no thank you but we will buy twitter for $9.74 billion if you want.”
OpenAI has really grown into a leader in the industry, and has since its launch brought in billions in investments. Musk鈥檚 attempt to buy the company is seen as his way to regain control over a project he helped start but later abandoned.
What Is Musk鈥檚 Argument Against OpenAI?
Musk and his legal team argue that OpenAI has turned into a commercial enterprise instead of the nonprofit research organisation it was meant to be. Musk has pointed out that OpenAI鈥檚 shift towards making money could mean it no longer acts in the public鈥檚 interest. His lawsuit claims that the company鈥檚 leadership has broken its original promises.
The legal battle has been going on for months now, with Musk first filing a lawsuit in California state court before taking the matter to federal court. His legal team has also asked government officials in California and Delaware to monitor OpenAI鈥檚 actions to ensure that any changes to its structure meet legal requirements.
Musk鈥檚 argument is that if OpenAI wants to become fully for-profit, then its non profit side must be properly compensated. This means OpenAI鈥檚 leadership would need to pay the fair market value for the non profit鈥檚 assets before moving forward with any changes.
More from News
- World Quantum Day 2026: Experts Reflect On Industry Developments This Year
- 79% Of UK Workers Fear Losing Their Jobs This Year – And Its Not AI Related
- Scail Launches To Help Regulated SaaS Businesses Navigate The AI 鈥淧erfect Storm鈥�
- X Is Taking A Slightly Different Approach To Managing Click Bait Content – Will It Work?
- AI Is Meant To Reduce Workloads, Why Is It Still Causing Workers Cognitive Fatigue?
- Apple Wins Q1 As Smartphones Shipments Go Up And Competitor Sales Go Down
- Can Travellers Expect Lower Flight Prices After The Ceasefire?
- Gen Z Consumers Face The Highest Online Fraud Risks – How Are They Staying Protected?
How Has OpenAI Responded?
OpenAI has made it clear that it has no interest in Musk鈥檚 bid. The company has been raising funds from other investors, including a $40 billion deal with SoftBank that could push its valuation to $300 billion. If this deal goes through, OpenAI would join the ranks of the world鈥檚 most valuable private companies.
Altman has strengthened his control over OpenAI by bringing in allies to the board and making it that the non profit still holds legal authority over the company. While Musk鈥檚 offer puts pressure on OpenAI, it is unlikely to succeed unless Altman and the board decide to sell.
A judge recently questioned whether Musk鈥檚 claims of harm were strong enough to justify stopping OpenAI鈥檚 transition. While the case is moving towards trial, it is uncertain whether Musk鈥檚 legal actions will change OpenAI鈥檚 course.
Will This Battle Continue?
Musk鈥檚 bid has made OpenAI鈥檚 plans a bit more complex to work through. If OpenAI鈥檚 non profit board decides to separate from the for-profit company, it will need to determine the exact value of its assets. Musk鈥檚 offer could influence this process by establishing a price that OpenAI must consider.
The legal fight is expected to continue, with a judge allowing the case to move to trial next year. Meanwhile, OpenAI is going ahead with its plans to grow regardless, securing investment deals and refining its corporate structure.
