Elon Musk-led group offers nearly $100bn to acquire OpenAI

Elon Musk, the Tesla founder, is leading a group of investors in a nearly $100 billion bid to acquire OpenAI, the artificial intelligence firm he co-founded in 2015.

According to The Wall Street Journal, Marc Toberoff, Musk’s attorney, confirmed that the takeover offer was submitted to OpenAI’s board of directors on Monday.

Toberoff said the offer seeks to purchase “all assets of OpenAI, Inc.” with funds designated “exclusively to further OpenAI, Inc.’s original charitable mission.”

The investor group includes Musk’s AI startup xAI, as well as major financial backers such as Baron Capital Group, Valor, Atreides, Vy Capital, Joe Lonsdale’s 8VC, and an investment vehicle led by Ari Emanuel, chief executive officer of Endeavor.

Toberoff said Musk’s group is willing to match or exceed any competing bids.

Sam Altman, OpenAI’s chief executive officer (CEO), swiftly dismissed Musk’s bid in a post on X (formerly Twitter).

Altman also made a counteroffer to purchase X for $9.74 billion.

“No thank you, but we will buy Twitter for $9.74 billion if you want,” he wrote.

Musk, who acquired X for $44 billion in 2022, fired back in the comments, calling Altman a “swindler.”

The X CEO left OpenAI’s board in 2019, citing disagreements over its direction.

Under Altman’s leadership, OpenAI transitioned from a nonprofit to a for-profit model, and secured major investments from companies like Microsoft.

Angered by the move, Musk, in December 2024, filed a lawsuit against OpenAI, arguing that its shift to a for-profit entity betrayed its original mission.

He also claimed the move created unfair competition for rivals, including xAI, his AI startup.

OpenAI was last valued at $157 billion in October 2024. However, the company is reportedly in discussions for a new funding round that could raise its valuation to $340 billion.

According to reports, SoftBank, a Japanese investment firm, is in talks to lead the funding round with an investment of up to $40 billion.

The company is also said to be planning to commit between $15 billion and $25 billion to the deal.