TLDR
- Elon Musk leads $97.4 billion bid to acquire OpenAI through investor consortium
- Sam Altman rejected bid, countering with $9.74B offer to buy Twitter instead
- Investor group includes Baron Capital, Valor Equity, Atreides Management, Vy Capital, and 8VC
- Bid appears to counter OpenAI’s plans to convert to for-profit structure by 2026
- Figure AI recently ended partnership with OpenAI after claimed breakthrough in robot intelligence
A group of investors led by Elon Musk has made a $97.4 billion offer to acquire OpenAI, the artificial intelligence company he co-founded in 2015. The bid, submitted to OpenAI’s board of directors on Monday, comes as the company moves forward with plans to transition from a nonprofit to a for-profit structure.
The investor consortium includes several firms with previous connections to Musk’s ventures. Baron Capital Group, which holds major stakes in Tesla and SpaceX, joined the bid alongside Valor Equity Partners, Atreides Management, Vy Capital, and 8VC. Entertainment company Endeavor’s CEO Ari Emanuel also participated through his investment fund.
Marc Toberoff, Musk’s attorney, delivered the offer to OpenAI’s board. The group stated they would match any higher bids that might emerge. Their stated goal is to return OpenAI to its original mission as an open-source, safety-focused organization.
OpenAI’s CEO Sam Altman responded swiftly to the offer with a dismissive tweet, stating “no thank you, but we will purchase Twitter for $9.74 billion if you’re interested.” This response suggests tension between the two tech leaders.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
The timing of the bid appears strategic, as OpenAI is currently working to complete its transition to a for-profit company by late 2026. This shift is part of a $6.6 billion funding round from last October that valued the company at $157 billion.
Each investor in the consortium has prior experience with Musk’s companies. Ron Baron’s Baron Capital manages funds with large investments in Tesla and SpaceX. Gavin Baker of Atreides Management previously invested in SpaceX during his time at Fidelity and has supported Musk’s Tesla compensation package.
Antonio Gracias, founder of Valor Management, served on Tesla’s board and invested early in SpaceX. Alexander Tamas’s Vy Capital holds stakes in multiple Musk ventures, including The Boring Company and Neuralink. Joe Lonsdale, who leads 8VC, has publicly supported Musk’s projects.
The bid follows recent developments in the AI industry. Figure AI, a robotics startup, recently ended its partnership with OpenAI, citing a “major breakthrough” in robot intelligence. This separation occurred shortly after the companies had announced a collaboration alongside a $675 million funding round.
OpenAI’s planned conversion to a for-profit structure has faced opposition from multiple parties. Musk has filed several lawsuits, and Meta has expressed concerns about the transition. Microsoft, a major investor in OpenAI, continues negotiations regarding equity stakes.
If successful, the acquisition would lead to a merger between xAI, Musk’s artificial intelligence company, and OpenAI. This would reunite Musk with the organization he departed in 2019, after which Altman became CEO.
The proposed deal represents more than double the amount Musk paid for Twitter in 2022, which he acquired for $43 billion with support from various investors and corporate allies.
Some industry observers suggest the bid might be a strategic move to increase the cost of OpenAI’s restructuring rather than a genuine acquisition attempt. The timing coincides with OpenAI’s ongoing efforts to convert its nonprofit structure.
Toberoff emphasized the importance of fair compensation for the charity in his statement to the Wall Street Journal, highlighting concerns about the control of what he called “the most transformative technology of our time.”
OpenAI has not provided an official response to the acquisition offer beyond Altman’s tweet. The company continues to move forward with its planned transition to a for-profit structure.
