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Elon Musk is leading a group that has put forward a massive $97.4 billion bid to take control of OpenAI’s nonprofit arm.

The offer, revealed on Monday, is the latest chapter in Musk’s ongoing battle against the AI firm’s shift toward a for-profit model—a move he has openly opposed.

The bid is set to escalate tensions between Musk and OpenAI CEO Sam Altman, whose relationship has grown increasingly hostile. Altman wasted no time firing back, posting on X, "No thank you, but we will buy Twitter for $9.74 billion if you want."

Must replied: "Swindler" in the post.

Musk co-founded OpenAI with Altman in 2015 as a nonprofit but parted ways before the company became the AI juggernaut it is today. In 2023, he launched his own AI venture, xAI, as a direct competitor.

Beyond AI, Musk remains a major force in politics and business. He has aligned closely with President Donald Trump, pouring more than $250 million into Trump’s re-election efforts and leading a new White House department focused on shrinking federal bureaucracy.

Musk recently clashed with Trump’s administration over a $500 billion OpenAI-led initiative announced at the White House.

At the heart of the battle is OpenAI’s push to transition from nonprofit status, which it argues is necessary to secure the kind of funding required to develop next-generation AI models.

Musk has strongly opposed this shift, suing Altman and OpenAI last year for allegedly prioritizing profits over the public good. In November, he sought a court order to block OpenAI’s transition into a for-profit entity.

"OpenAI was founded as an open-source, safety-focused organization working for the benefit of humanity," Musk said in a statement on Monday. "It’s time to bring it back to those principles. We will make sure that happens."

But OpenAI doesn’t seem interested in Musk’s offer. According to The Information, Altman told employees that the board has no intention of engaging with what he described as a “supposed bid.”

Musk’s consortium includes xAI, Baron Capital Group, Emanuel Capital, and other investors. If the deal goes through, reports suggest xAI could merge with OpenAI. xAI recently secured $6 billion in funding at a $40 billion valuation, signaling its ambition to challenge OpenAI head-on.

The bid also throws a wrench into OpenAI’s current fundraising plans. The company was valued at $157 billion in its last funding round and is reportedly in talks with SoftBank for a deal that could push its valuation to $300 billion.

Aside from regulatory hurdles, financing a bid of this scale would be no small feat for Musk. While his Tesla stock is valued at around $165 billion, his ability to leverage it for a deal could be limited after his $44 billion purchase of Twitter (now X) in 2022. Analysts speculate he could sell Tesla shares, take out loans against his stake, or use SpaceX equity—worth tens of billions—as collateral.

"This bid makes OpenAI’s transition into a for-profit model much more complicated," said Gil Luria, an analyst at D.A. Davidson. "The offer is backed by credible investors, and OpenAI’s board has a fiduciary responsibility to consider whether it’s a better deal than SoftBank’s."

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