• Elon Musk offered $97.4 billion to take over OpenAI, but Sam Altman declined, sparking a public feud.
  • The conflict centers on OpenAI’s transition from nonprofit to for-profit, which Musk argues betrays its founding mission.
  • Legal battles and disagreements over Altman’s plans, including with Microsoft, add further tension to the dispute.

Elon Musk and OpenAI CEO Sam Altman are clashing again. On Monday, Musk made a $97.4 billion unsolicited offer to take over the nonprofit that oversees OpenAI, the company behind ChatGPT. Altman, however, swiftly declined the proposal, responding on X with a blunt “No thank you” and countering with a tongue-in-cheek offer to buy Musk’s social media platform X for “$9.74 billion.”

Musk, who acquired X (formerly Twitter) for $44 billion in 2022, escalated the feud further. He and his group of investors—including Valor Equity Partners and Hollywood exec Ari Emanuel—claim that OpenAI is betraying its original open-source mission.

OpenAI’s Nonprofit-to-For-Profit Transition Sparks Controversy

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The conflict stems from OpenAI’s transformation. Initially co-founded by Musk and Altman in 2015, OpenAI was envisioned as a nonprofit research lab promoting public good. But when Musk exited the board in 2018, Altman pivoted the organization, creating a for-profit subsidiary to attract investments from major players like Microsoft.

Now, Altman plans to spin off the nonprofit arm by 2026, valuing it as part of the company’s overall structure. Musk has opposed this move, arguing through his attorney, Marc Toberoff, that such changes stray from OpenAI’s founding principles. Toberoff told the Wall Street Journal that Musk’s bid aims to restore OpenAI as an “open-source, safety-focused force for good.”

Legal Battles Add Tension to the Dispute

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Musk’s concerns have gone beyond public disagreements. In 2022, Musk filed a lawsuit against OpenAI, first in California state court and later in federal court, accusing the company of betraying its nonprofit mission. He also demanded that OpenAI’s nonprofit arm be fairly compensated as it transitions into a for-profit entity.

Last week, lawyers from both sides appeared in federal court. U.S. District Judge Yvonne Gonzalez Rogers didn’t issue a ruling but expressed skepticism about Musk’s claims of irreparable harm if the transition proceeds. She noted, “It is plausible that what Mr. Musk is saying is true. We’ll find out. He’ll sit on the stand.”

Setbacks for Altman’s Vision

Altman’s plans face additional obstacles, including legal disputes with Microsoft and disagreements over how to value OpenAI’s nonprofit arm. This friction highlights deeper questions about balancing innovation, profit, and ethical AI development.

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The rivalry between Musk and Altman also bled into politics. Last month, Altman joined President Trump to announce “Stargate,” a plan to invest $500 billion in U.S. data centers. Musk criticized the project on X, accusing Altman and his backers of lacking the promised funds and calling him a “swindler.”

What Do You Think?

The Musk-Altman feud raises critical questions about the future of AI, ethics, and corporate influence. Who’s right in this battle for OpenAI’s direction? Let us know your thoughts in the comments below.

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