The Battle for OpenAI: Musk vs. Altman

A Billion-Dollar Feud in the AI Industry

The artificial intelligence industry is witnessing one of its most high-profile corporate clashes. Elon Musk’s $97.4 billion bid to acquire OpenAI has been publicly rejected by CEO Sam Altman, reigniting tensions between two of tech’s most influential figures. The move has left industry experts speculating about the future of AI governance, OpenAI’s trajectory, and Musk’s alternative plans with his own AI venture, xAI.

Altman’s sharp-witted response on social media, suggesting OpenAI could buy Twitter for $9.74 billion instead, has only added fuel to the ongoing feud. With Musk advocating for open-source AI and Altman pushing forward OpenAI’s commercial expansion, the AI industry is at a crossroads.

Musk’s Offer and Altman’s Rejection

Musk’s Bold Bid for Control

Elon Musk, one of OpenAI’s co-founders, has long been vocal about his concerns over the company’s shift toward a for-profit model. His staggering $97.4 billion offer to regain control of OpenAI underscores his determination to steer the company back to its original open-source mission. However, this move was met with immediate resistance from Altman and the OpenAI leadership.

Altman’s Sarcastic Response

Rather than issuing a formal rejection, Sam Altman took to X (formerly Twitter) to decline the offer in a humorous way:

“No thank you, but we will buy Twitter for $9.74 billion if you want.”
This comment, which quickly went viral, mocks Musk’s ownership of Twitter (now X) and suggests OpenAI’s perceived superiority in the tech space.

The History of Musk and OpenAI’s Rift

Musk’s Departure and Lawsuit Against OpenAI

Musk played a crucial role in the founding of OpenAI in 2015 but left the company in 2018 due to strategic disagreements. He has since accused OpenAI of abandoning its mission of creating AI for the public good, instead forging lucrative partnerships with corporate giants like Microsoft. In 2024, Musk filed a lawsuit against OpenAI and Altman, claiming they had violated their nonprofit commitments. However, he later dropped the case after internal emails surfaced showing that he had previously supported a transition to a for-profit model.

Why Musk Wants OpenAI Back

Musk has repeatedly stated that AI development should remain open-source and transparent to ensure it benefits humanity rather than a select few corporations. His alternative AI company, xAI, is built on this principle, competing directly with OpenAI’s ChatGPT and Google’s DeepMind.

OpenAI’s Growth and Strategic Partnerships

OpenAI’s Skyrocketing Valuation

Under Altman’s leadership, OpenAI has secured massive investments and strategic deals. The company was valued at $157 billion in 2024 and continues to attract major investors, including a $40 billion deal with SoftBank.

The $500 Billion “Stargate” AI Project

OpenAI is also a key player in the ambitious $500 billion “Stargate” AI infrastructure project, supported by former U.S. President Donald Trump. This initiative aims to develop next-generation AI supercomputing centers, further solidifying OpenAI’s dominance in the sector.

What’s Next for Musk and OpenAI?

Musk’s Next Move: Increased Bid or AI Expansion?

While Musk’s initial bid was rejected, sources close to his investor consortium suggest they may be willing to increase their offer. If successful, this would be one of the largest acquisitions in tech history.

Altman’s Confidence in OpenAI’s Future

Altman’s dismissive response signals that OpenAI has no interest in selling. Instead, the company remains focused on expanding its AI capabilities and strengthening its commercial partnerships.

A Defining Moment for AI

The ongoing power struggle between Elon Musk and Sam Altman highlights a deeper ideological battle in the AI industry. As Musk continues to push for open-source AI and Altman focuses on monetization and partnerships, the future of artificial intelligence remains uncertain.

Will Musk’s investor group increase their bid, or will he shift focus to expanding xAI? One thing is certain—this battle for AI dominance is far from over.