Sam Altman Declines Elon Musk’s $97.4 Billion Offer for OpenAI

A group of investors led by Elon Musk proposed to acquire the controlling nonprofit organization of OpenAI for $97.4 billion, but the offer was declined. This was reported by WSJ, citing informed sources.

no thank you but we will buy twitter for $9.74 billion if you want

— Sam Altman (@sama) February 10, 2025

“Thank you. But we will buy Twitter for $9.74 billion if you want,” responded OpenAI CEO Sam Altman.

The consortium includes Musk, his AI startup xAI, and long-time investors in his other businesses, including Baron Capital Group, Valor, Atreides, Vy Capital, 8VC’s Joe Lonsdale, and a fund led by Endeavor CEO Ari Emanuel.

The head of Tesla and X aims to restore OpenAI to its former status as “an open-source force for good with a focus on safety,” according to the statement.

According to the publication, if the deal were to proceed, xAI would merge with OpenAI.

In a conversation with Bloomberg, Telluride Legal Strategies founder Rob Rosenberg found it difficult to assess the seriousness of Musk’s intentions and his motives.

He noted that even if unsuccessful, such actions by the entrepreneur could complicate OpenAI’s transformation from a nonprofit into a multibillion-dollar commercial AI giant, which he opposed.

The investors’ group lawyer, Mark Toberoff, pointed to one reason for the offer: to exert external pressure on OpenAI while it determines the value of part of its business in its transition to a commercial structure.

“This value cannot be determined by insiders on both sides of the same table. The public is the beneficiary of OpenAI, and a ‘favorable deal’ among ‘insiders’ does not serve its interests,” explained the representative.

The agency noted that Musk and Altman have long been at odds over the direction of OpenAI’s development.

According to the Tesla chief, the startup has abandoned all claims to operate as a charitable organization for the benefit of humanity with an emphasis on openness and safety.

OpenAI rejected this characterization and last year stated that Musk was simply “upset” after a failed attempt to make the company part of Tesla.

Since its inception as a nonprofit a decade ago, when Musk and Altman worked together as founders, OpenAI has received billions of dollars from Microsoft and other investors.

In a revised version of the lawsuit that Musk filed in August, the entrepreneur described OpenAI’s partnership with Microsoft as a “monopoly,” “actively trying to eliminate competitors like xAI.”

Earlier, Donald Trump announced $500 billion in private sector investments in artificial intelligence infrastructure. For these purposes, OpenAI, Softbank, and Oracle will create a joint venture called Stargate. The Japanese company may invest $19 billion.

In January, media reported on OpenAI’s plans to close a new funding round valued at $340 billion. It is expected that SoftBank will lead the round with an investment of $15 billion to $25 billion, becoming the largest investor in Sam Altman’s firm.