The ongoing battle between two of the most powerful figures in artificial intelligence, Elon Musk and Sam Altman, has just reached new heights. In a dramatic turn of events, Musk, the billionaire CEO of Tesla and xAI, attempted to buy OpenAI, the company he co-founded in 2015 but later parted ways with. His massive $97.4 billion offer was swiftly rejected by OpenAI’s CEO, Sam Altman, who countered with a scathing response: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
This exchange isn’t just a display of power—it represents a deepening feud between two visionaries shaping the future of artificial intelligence. Let’s take a closer look at the history behind this rivalry, the motivations driving their actions, and what this latest development means for the AI landscape.
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Musk’s History With OpenAI: From Co-Founder to Opponent
Elon Musk was instrumental in the founding of OpenAI in 2015, originally positioning it as a non-profit research organization focused on developing artificial intelligence for the benefit of humanity. Alongside Altman and other prominent tech figures, Musk pledged substantial financial support to ensure AI advancements would be openly accessible and not controlled by a single entity.
However, things took a turn in 2018 when Musk left OpenAI’s board. According to OpenAI’s own statements, Musk had pushed for a more aggressive, for-profit model and sought majority control. When the company refused, he walked away, predicting their failure. Since then, OpenAI has evolved significantly, transitioning into a capped-profit company, and more recently, a Public Benefit Corporation (PBC). This shift was met with strong criticism from Musk, who claimed that OpenAI was deviating from its original mission.
Fast forward to late 2024, Musk filed a lawsuit against OpenAI, alleging that its transition to a PBC contradicted the founding principles of the organization. He even sought a preliminary injunction to halt the restructuring, arguing that OpenAI’s transformation into a profit-driven enterprise was detrimental to the future of AI.
Musk’s $97.4 Billion Takeover Attempt
According to The Wall Street Journal, Musk, backed by a consortium of investors, submitted a massive $97.4 billion buyout offer to OpenAI. His intention? To take control of the non-profit arm that still holds influence over the for-profit OpenAI LP.
Musk’s attempt to reclaim control over OpenAI comes amid growing competition in the AI sector. With his own AI venture, xAI, developing the Grok chatbot and integrating it into X (formerly Twitter), Musk is making a strong push into the artificial intelligence domain. However, OpenAI’s ChatGPT remains the most dominant AI product on the market, and acquiring OpenAI would catapult Musk to the forefront of AI research and development.
Sam Altman’s Blistering Response
Sam Altman, who has steered OpenAI through its rapid evolution into a leader in artificial intelligence, wasted no time rejecting Musk’s bid. His response—“No thank you, but we will buy Twitter for $9.74 billion if you want”—was a direct jab at Musk’s troubled acquisition of Twitter, now X.
Musk bought Twitter in 2022 for $44 billion, only to see its value plummet due to controversial policy changes, a mass advertiser exodus, and declining user engagement. Altman’s sarcastic offer was not just a rejection—it was a public humiliation, implying that OpenAI considers X an asset worth a fraction of its original price tag.
Why Musk Wants OpenAI—and Why Altman Won’t Sell
Musk’s interest in OpenAI is strategic. Despite the presence of xAI and its Grok chatbot, OpenAI still leads the AI arms race with ChatGPT, DALL·E, and other groundbreaking technologies. By taking over OpenAI, Musk would not only regain influence over its AI research but also secure a dominant position in the AI industry, challenging the likes of Google’s DeepMind and Meta’s AI initiatives.
However, OpenAI’s leadership, under Altman, has no intention of relinquishing control. The company has secured multi-billion-dollar investments from Microsoft and other major players, ensuring its continued expansion without the need for Musk’s involvement. Furthermore, OpenAI’s transition to a PBC structure allows it to balance commercial success with its mission-driven approach, something Altman and his team fiercely defend.
The Bigger Picture: A Clash of AI Philosophies
The Musk-Altman feud isn’t just about corporate control—it reflects a deeper ideological battle over the future of artificial intelligence.
- Musk’s AI Vision: Musk has been vocal about his concerns regarding AI safety, frequently warning about the existential risks posed by artificial intelligence. He envisions AI development being controlled in a way that aligns with the broader interests of humanity, though his critics argue that his moves are often self-serving.
- Altman’s AI Vision: Altman, on the other hand, champions a balanced approach—pushing for rapid AI development while ensuring oversight and ethical considerations. His leadership at OpenAI has propelled the organization to the forefront of AI innovation, attracting massive investments and global influence.
What’s Next in the Musk-Altman Showdown?
While Altman’s response effectively shuts down Musk’s acquisition attempt, this is unlikely to be the last battle between the two tech moguls. With AI continuing to be the most contested technological frontier, both Musk and Altman will remain key figures shaping its trajectory.
For Musk, the failure to acquire OpenAI means doubling down on xAI’s efforts to compete with ChatGPT. His plans for integrating AI into Tesla’s autonomous driving, robotics, and his social media platform X signal that he’s far from backing down.
For Altman, the focus remains on pushing OpenAI forward, strengthening its partnerships, and ensuring its dominance in AI research and applications. OpenAI’s collaboration with Microsoft and other major players suggests it has no shortage of resources to stay ahead.
Final Thoughts: A Battle That’s Far From Over
Elon Musk and Sam Altman’s clash is more than just a power struggle—it’s a defining battle in the future of artificial intelligence. While Musk’s attempt to reclaim OpenAI has been thwarted, the rivalry between these two tech giants is far from over. With both men wielding enormous influence and resources, the AI industry is set for more dramatic twists in the coming years.
One thing is certain: when Musk and Altman collide, the entire tech world pays attention. Stay tuned for the next chapter in this high-stakes AI showdown.
