Elon Musk Leads Offer to Buy ChatGPT’s Parent Company for Nearly $100 Billion

In a bold and high-stakes move, Elon Musk is leading a group of investors in a bid to acquire OpenAI, the parent company of ChatGPT, for a staggering $97.4 billion. The offer, which has the potential to reshape the landscape of artificial intelligence (AI), comes after years of tension between Musk and OpenAI’s CEO, Sam Altman.

Musk has frequently clashed with OpenAI’s leadership, accusing them of misrepresenting the company’s mission and violating its philanthropic roots. He claims that OpenAI has strayed from its original purpose, which was focused on benefiting humanity, by transitioning into a for-profit organization with the intent to monetize its AI tools. OpenAI’s unique structure operates as a nonprofit entity overseeing OpenAI LP, a for-profit company within its framework, which has grown in value to an estimated $100 billion in just a few years.

Musk’s massive investment could grant him majority control of OpenAI, potentially positioning him to influence the future of the company’s AI research and development. OpenAI’s AI products, including the widely popular ChatGPT, have propelled the company’s growth, and Altman has been praised as the mastermind behind that success.

Marc Toberoff, an attorney representing the investors in the bid, criticized OpenAI’s current trajectory, emphasizing the need for the company to return to its safety-focused, open-source roots. "It’s time for OpenAI to return to the open-source, safety-focused force for good it once was," Toberoff stated.

In a response on social media platform X, Altman humorously rejected the offer, suggesting, "no thank you but we will buy Twitter for $9.74 billion if you want."

Musk’s relationship with OpenAI has been fraught with controversy since he co-founded the company in 2015. He left OpenAI in 2018 after a dispute regarding the company’s shift to for-profit work. Musk’s objections stemmed from his belief that artificial general intelligence (AGI) posed a significant threat to humanity, and he originally hoped OpenAI would work towards creating AI in a manner that was both open-source and aligned with broader societal safety.

However, the growing financial pressure from investors such as Microsoft and Thrive Capital led OpenAI to push for faster innovation, which Musk has criticized as potentially risky. In late 2023, OpenAI was embroiled in an internal struggle when the board fired Altman, only to quickly reinstate him. This incident fueled further concerns that the company was prioritizing profit over caution and safety in its development of AGI.

Musk’s legal battles with OpenAI have added another layer of complexity to the situation. His first lawsuit, filed in June 2024, was dropped after Musk’s early emails with OpenAI were released, showing that he had acknowledged the need for significant revenue to fund AI research. Musk later filed a second lawsuit in August 2024, accusing OpenAI of prioritizing profit over safety in the development of AGI and engaging in racketeering.

While Musk’s move to purchase OpenAI could grant him influence over the company’s future direction, it remains to be seen how Altman and the current leadership will respond. The ongoing clash between Musk and OpenAI highlights the competing interests in the rapidly evolving AI industry — balancing innovation, safety, and profitability.

The outcome of this offer could set the stage for a new era in AI development, with Musk at the helm of one of the most influential tech companies in the world.