Sam Altman Rejects Elon Musk's $97.4 Billion Bid for OpenAI Amid Ongoing Feud

In a dramatic twist of events, OpenAI CEO Sam Altman has seemingly rejected Elon Musk's $97.4 billion bid to buy the company, marking the latest chapter in the ongoing feud between the two tech giants. Musk, who co-founded OpenAI alongside Altman in 2015, reportedly submitted the bid on February 10 in an attempt to wrest control of the nonprofit AI firm. However, Altman’s response was swift and pointed, dismissing the offer with a cheeky reply on X (formerly Twitter).

Altman posted, "No thank you, but we will buy Twitter for $9.74 billion if you want," a playful jab at Musk, who purchased Twitter for $44 billion in 2022. Musk, in turn, retaliated by posting a video clip of Altman’s testimony before Congress in 2023, where Altman stated that he owned no equity in OpenAI. Musk captioned the video with "Scam Altman," underscoring the deepening rift between the two.

This public exchange highlights the tension between Musk and Altman over the direction of OpenAI. Although the company was originally launched as a nonprofit organization, Altman has pushed to transition it into a for-profit venture, a move Musk has staunchly opposed. In August 2023, Musk sued OpenAI and Altman, alleging that the company had violated its commitment to remain a nonprofit. While Musk later dropped the lawsuit after OpenAI released early emails showing Musk’s own acknowledgment that the firm might need to make money, the rift between the two remained unresolved.

Musk’s reported bid to take over OpenAI comes amidst these ongoing disagreements, with Musk describing the current state of OpenAI as straying too far from its original mission. In a statement, Musk emphasized his vision for OpenAI's future, saying, "It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens."

Backing Musk’s bid is a group of investors led by his AI company, xAI, along with prominent venture capital firms such as Baron Capital, Vy Capital, and 8VC. The group has reportedly expressed its willingness to match or surpass any higher offers, signaling its serious interest in taking control of OpenAI. Musk's legal representative, Marc Toberoff, criticized the current OpenAI leadership, stating, “If Sam Altman and the present OpenAI Inc. Board of Directors are intent on becoming a fully for-profit corporation, it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time.”

The story of OpenAI’s evolution is one of shifting priorities. After Musk’s departure in 2018, OpenAI transitioned from a nonprofit to a hybrid structure, spinning off its for-profit subsidiary, OpenAI Global, LLC, in 2019. This change allowed the company to attract significant funding, including investments from tech giants like Microsoft, which has helped bankroll OpenAI’s ambitious AI projects.

In October 2023, OpenAI was valued at $157 billion following a $6.6 billion funding round. Meanwhile, reports from February 7, 2025, indicated that Softbank is nearing a $40 billion deal with OpenAI, potentially raising the company’s valuation to $260 billion.

As OpenAI continues to navigate these high-stakes negotiations, the rivalry between Musk and Altman appears to be intensifying. Musk's attempt to seize control of the company he helped create underscores the larger debate within the tech world: the balance between open-source ideals and the pursuit of profitability in the rapidly evolving AI industry.