Elon Musk, one of OpenAI’s founding members, had a contentious departure from the organization before ChatGPT gained prominence. The billionaire has openly criticized OpenAI’s transition from a non-profit to a profit-driven entity. Recently, Musk made a staggering $97.4 billion bid to acquire OpenAI’s non-profit division. However, he now states he will withdraw the offer if OpenAI abandons its for-profit ambitions.
“If OpenAI’s board is willing to uphold the organization’s charitable mission and formally commit to halting its for-profit conversion, Musk will rescind the bid,” his legal team stated.
Legal Battle Over OpenAI’s Profit Shift
Musk’s bid is intertwined with an ongoing legal dispute challenging OpenAI’s shift toward commercialization. OpenAI plans to transition its AI technology into a business-driven model, with the non-profit division holding a minor stake in the venture. Musk argues that this move contradicts OpenAI’s original mission of democratizing AI and preventing its control by corporate giants.
Sam Altman Fires Back at Musk’s Takeover Attempt
Following Musk’s acquisition offer, OpenAI CEO Sam Altman responded with a sharp retort—suggesting that OpenAI could instead purchase X (formerly Twitter) for one-tenth of Musk’s bid. He later emphasized in public statements that OpenAI is not for sale, dismissing Musk’s move as a disruptive tactic.
Additionally, Reuters recently reported that OpenAI has not officially received Musk’s $97.4 billion bid, further casting doubt on its legitimacy. Internally, Altman reassured employees that the organization remains committed to its current structure.
Musk’s Persistent Efforts to Control OpenAI
This is not Musk’s first attempt to take over OpenAI. Internal documents reveal that he previously sought to merge OpenAI with Tesla and push for a for-profit strategy under his leadership. In an interview with Axios, Altman stated that Musk has long attempted to take control of the AI company.
“OpenAI is not for sale. Our mission is not for sale. It’s ridiculous for a competitor who can’t win in the market to attempt a buyout instead,” Altman asserted.
Musk’s AI Ambitions With xAI and Grok
While Musk battles OpenAI, he is simultaneously expanding his own AI venture, xAI. His ChatGPT competitor, Grok, is already making waves in the AI landscape. During a recent speech at the World Governments Summit in Dubai, Musk revealed that Grok-3 is in the late stages of development, boasting enhanced reasoning capabilities.
OpenAI’s Future Plans: GPT-5, Custom AI Chips, and the “Stargate” Project
Despite the corporate drama, OpenAI remains focused on innovation. The company has hinted at its next-gen GPT-5 launch, a strategic overhaul of its AI model approach, and in-house AI chip development. Additionally, OpenAI is working on its ambitious “Stargate” project—a $500 billion initiative aimed at boosting AI capabilities and reinforcing U.S. dominance in artificial intelligence.