Musk and Investors Push to Acquire OpenAI’s Nonprofit Arm
Billionaire Elon Musk, leading a coalition of investors, has made a bid to purchase OpenAI’s nonprofit division, according to The Wall Street Journal. The offer was formally presented to OpenAI’s board of directors this Monday by Musk’s lawyer, Mark Toberoff.
The investor group includes Hollywood power player Ari Emanuel, Palantir co-founder Joe Lonsdale, and investment firm Valor Equity Partners. Their goal is to reclaim OpenAI’s original vision of an open, safety-focused AI initiative—an ethos Musk believes has been lost as OpenAI transitions into a commercial powerhouse under CEO Sam Altman.
A Public Clash Between Tech Titans
Reacting to the proposal, Musk stated:
“It’s time for OpenAI to return to being the transparent, safety-first force for good it once was.”
However, Sam Altman quickly dismissed the offer, responding with sarcasm:
“No, thanks. But we’ll buy Twitter for $9.74 billion if you’d like.”
Musk fired back, calling Altman a fraud, further intensifying the ongoing rivalry between the two.
Tensions Over OpenAI’s Future
This latest dispute highlights the deepening divide over OpenAI’s mission and ownership structure. Initially founded as a nonprofit focused on open-source AI, OpenAI has shifted toward commercialization, securing massive investments from Microsoft and others. Musk, a co-founder of OpenAI who left in 2018, has repeatedly criticized the company’s current direction.
With Musk’s bid rejected and OpenAI firmly under Altman’s leadership, the future of the AI company remains highly competitive—and full of controversy.
Do you think Musk’s attempt to buy OpenAI’s nonprofit arm was genuine or just a public jab at Altman?
What’s Next for OpenAI and Musk?
With OpenAI’s rejection of Musk’s proposal, it’s unclear what his next move will be. Given his history, he may continue to publicly challenge OpenAI’s direction or even attempt legal action. Meanwhile, OpenAI remains focused on expanding its AI capabilities, securing further investments, and developing its proprietary AI chips to reduce reliance on Nvidia.
So, some speculate that Musk’s interest in OpenAI could tie into his own AI company, xAI, which he founded in 2023 to compete directly with OpenAI. With xAI’s chatbot, Grok, already integrated into X (formerly Twitter), Musk might leverage this controversy to attract more talent and investors to his venture.
As the AI arms race accelerates, the battle between Musk and OpenAI is far from over. Whether this was a genuine acquisition attempt or just another chapter in their ongoing feud, one thing is clear—AI’s future is being shaped by high-stakes rivalries and billion-dollar power plays.
