Elon Musk has expressed interest in acquiring OpenAI, a company currently valued by investors at approximately $97 billion. This figure represents only about a third of the valuation analysts have assigned to the artificial intelligence firm. OpenAI’s CEO, Sam Altman, responded to Musk’s interest with a dose of humor. He posted on Musk’s own platform, X, offering to buy it for precisely one-tenth of what investors are willing to pay for OpenAI—$9.74 billion.
A Long-Running Feud
The exchange is just the latest chapter in a long-standing rivalry between Musk and Altman. While Altman acknowledges that Musk played a crucial role in OpenAI’s early days, calling him a great businessman, he has also referred to Musk as a combative “bully.” Speaking on The Free Press podcast, Altman remarked that after clashing with tech giants like Jeff Bezos, Bill Gates, and Mark Zuckerberg, Musk had now set his sights on him.
For his part, Musk agrees on at least one point: OpenAI wouldn’t exist without his early investment. “If I hadn’t put in $50 million at the start, there would be no OpenAI today,” Musk said in an interview with MSNBC.
Allegations of Unfair Competition
Musk left OpenAI in 2018 after a dispute over the company’s direction, just before the organization made headlines with the release of ChatGPT. Since then, he has launched his own AI company, xAI, and has frequently accused OpenAI of engaging in unfair competition.
Originally founded as a nonprofit dedicated to advancing AI for the benefit of humanity, OpenAI later spun off a for-profit arm. Additionally, its software code, once open-source, is now proprietary—a shift Musk likens to an environmental group turning into a logging company and selling the wood. In response to these concerns, he filed a lawsuit against OpenAI nearly a year ago.
Meanwhile, OpenAI has requested the removal of existing profit caps, arguing that such a change is necessary to attract investors and fund further AI research.
The Role of Government and Big Tech
The battle for AI dominance has also drawn the attention of political leaders. Former President Donald Trump has reportedly secured $500 billion in funding for AI research in the U.S., with a significant portion expected to go toward a joint venture involving OpenAI and the Japanese investment giant SoftBank. Musk, who has served as an advisor to Trump, was not pleased with the deal. He publicly criticized the initiative, dismissing it as poorly conceived.
A Futile Offer?
Musk’s bid to acquire OpenAI raises questions about its feasibility. While his own AI research team has made surprising strides recently, OpenAI remains significantly larger than xAI.
Bloomberg analyst Mandeep Singh is skeptical, arguing that Musk’s offer is unlikely to succeed—not just because of the price, but also due to Microsoft’s deep involvement with OpenAI. Microsoft has acquired a 49% stake in the company and is heavily reliant on its technology for AI applications. According to Singh, the software giant effectively controls OpenAI and has no intention of relinquishing that position.
