Elon Musk vs. Sam Altman: The OpenAI Takeover Battle
Elon Musk, backed by a consortium of investors, recently made a $97.4 billion bid to take control of OpenAI’s nonprofit governing entity. His goal? To return OpenAI to its “open-source, safety-first” mission, which he believes has been lost in its shift toward a for-profit model. However, OpenAI CEO Sam Altman swiftly rejected the offer, replying with a sarcastic counter-proposal—he would buy Twitter (now X) for $9.74 billion instead.
This public showdown highlights a deeper conflict over the future of AI development, with Musk advocating for openness and safety, while Altman navigates OpenAI’s expansion into commercial AI dominance.
Why Did Musk Make the Bid?
Musk, one of OpenAI’s original funders, has long expressed concerns over the company’s transition from a nonprofit to a for-profit model, particularly after Microsoft’s deep involvement in OpenAI’s operations. His bid was positioned as an attempt to “course-correct” OpenAI’s direction, ensuring AI remains beneficial to humanity rather than controlled by a few powerful entities.
He argues that OpenAI, which was founded on open-source principles, has now become a closed, corporate-driven organization prioritizing commercial gains over ethical AI development.
Sam Altman’s Sharp Response
Altman, who has led OpenAI’s rapid growth, dismissed Musk’s offer outright. In a move that many saw as mocking Musk, Altman responded on X, joking that he would buy Twitter (now X) for $9.74 billion instead—a direct jab at Musk’s controversial acquisition of Twitter in 2022 for $44 billion, which later saw a significant decline in valuation.
The Bigger AI Battle: Open vs. Closed AI
This dispute isn’t just personal—it reflects a wider debate in AI development:
| Musk’s Vision (Open AI) | Altman’s Vision (Controlled AI) |
|---|---|
| AI should be open-source | AI should be proprietary for safety |
| Decentralized AI benefits humanity | AI development needs corporate funding |
| Focus on ethics and safety | Focus on commercial scalability |
Musk argues that restricting AI models to a select few companies increases risks of corporate control, while Altman believes limiting access ensures safety and responsible growth.
Impact on OpenAI’s Future
Altman is currently in the middle of fundraising efforts, seeking a $300 billion valuation for OpenAI. If Musk’s consortium had successfully acquired OpenAI’s nonprofit arm, it could have disrupted Altman’s ability to raise further funds and pushed OpenAI towards an open-source, less corporate-driven model.
With Altman standing firm and rejecting Musk’s bid, OpenAI is likely to continue its trajectory towards commercialization, with Microsoft remaining a key stakeholder.
Final Thoughts
This latest feud between Musk and Altman escalates the power struggle in AI development. While OpenAI continues expanding under Altman’s leadership, Musk is expected to pursue his own AI projects, such as xAI, to rival OpenAI. The AI industry will likely see more battles between open vs. closed models, influencing the future of AI accessibility, safety, and control.