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OpenAI Dismisses Elon Musk’s $97.4 Billion Proposal
According to OpenAI, Elon Musk’s much-publicized $97.4 billion offer was “not a bid at all.” In a letter to Musk’s legal team, OpenAI attorney William Savitt stated that although the proposal was presented to the board, it did not align with the organization’s mission. Consequently, the board unanimously decided to reject it.
Just days before, Musk and a group of investors had announced a $97.4 billion plan to return OpenAI to its original nonprofit structure. In response, Bret Taylor, chairman of OpenAI’s board, made a clear statement: “OpenAI is not for sale.”
Sam Altman, OpenAI’s CEO, replied to Musk’s proposal on X (formerly Twitter) with: “No, but we’ll buy Twitter for $9.74 billion if you want.” Musk, who owns X, countered by labeling Altman “Scam Altman.”
Musk asserts that Altman wants to transform OpenAI into a profit-generating enterprise. The two co-founded OpenAI but parted ways over strategic differences, leading Musk to file a lawsuit to ensure OpenAI adheres to its original agreements and avoids becoming a fully profit-driven entity. Neither OpenAI nor X is currently a publicly traded company.
Additional Background
OpenAI began in 2015 as a nonprofit research outfit devoted to ensuring AI technology benefits all of humanity. Over time, it adopted a so-called “capped-profit” model, intending to attract substantial investment while staying true to its mission—a shift some critics see as backpedaling from its nonprofit roots. Musk was a major donor and initially held a board seat but eventually left over strategic disagreements. Under Sam Altman’s leadership, OpenAI has released notable AI products, including ChatGPT, which quickly gained popularity and solidified the organization’s position at the forefront of machine learning.
Buying Tesla Stock?
Since neither OpenAI nor X is publicly listed, market watchers have turned their attention to Tesla (TSLA), the electric vehicle giant closely associated with Musk and a primary source of his income. According to 35 Wall Street analysts over the last three months, Tesla maintains a consensus rating of “Hold,” based on 13 “Buy,” 12 “Hold,” and 10 “Sell” recommendations. Their average price target of $340.50 points to a possible 4.31% downside from the current share price.
What’s Next?
This dispute raises bigger questions about balancing rapid innovation, ethical considerations, and funding within AI-focused organizations. As Musk presses forward with legal measures to keep OpenAI closer to its nonprofit roots, OpenAI’s leadership insists on a framework that can attract top talent and long-term financial backing. With artificial intelligence evolving at breakneck speed, industry observers will be watching how this showdown shapes AI’s future—both in terms of technological advancement and the organizations behind it.
