Musk vs. Altman: The High-Stakes Fight for the Future of Generative AI

Elon Musk has once again stirred up the AI world with a bold and unexpected move. This week, he made an unsolicited bid to acquire OpenAI Inc., the nonprofit that oversees OpenAI and its groundbreaking AI model, ChatGPT. Musk, who helped co-found OpenAI, claims he wants to bring the organization back to its original mission—an open-source, safety-first AI dedicated to benefiting humanity. To make that happen, he’s offering a staggering $97.4 billion for OpenAI Inc.’s assets, including its for-profit subsidiary, OpenAI Global, LLC.

But OpenAI CEO Sam Altman didn’t waste a second rejecting the offer. In a sharp and direct response, he dismissed Musk’s bid outright and even fired back with a sarcastic counteroffer—he’d gladly buy Twitter (X) from Musk for $9.74 billion.

Is this just another chapter in the ongoing battle between two tech giants, or is something bigger at play?

With all the concerns surrounding generative AI—job losses, content theft, and cybercrime—many might welcome the idea of OpenAI returning to its nonprofit roots. It sounds promising, even comforting. But can we really take the altruistic promises of one of the world’s richest men at face value?

Elon Musk’s latest move could shake up OpenAI’s future in ways we can’t ignore. If he gets his way, it won’t just affect one company—it could reshape the entire AI industry.

Key Takeaways:

Musk’s Surprise Move: Elon Musk shocked the AI industry with his massive $97.4 billion bid to take full control of OpenAI.
Altman’s Swift Rejection: OpenAI CEO Sam Altman immediately shut down the offer, calling it “embarrassing.”
What’s Next? Musk seems determined, and his push for open-source AI could resonate with many developers and tech enthusiasts. Whether this turns into a serious battle or just another dramatic exchange between two of tech’s biggest names remains to be seen.

This clash isn’t just about money—it’s a fight over the very soul of AI and the future of how it’s built, controlled, and shared with the world.

Tech Titans at War

Elon Musk and Sam Altman go way back. They co-founded OpenAI in 2015, bringing together a powerhouse of tech giants like Reid Hoffman, Peter Thiel, Amazon Web Services (AWS), Infosys, and the legendary startup incubator Y Combinator. The goal? To push AI forward in a way that benefits humanity.

But by 2019, things had taken a sharp turn. Their partnership, once built on shared ambition, crumbled over control issues. Musk wanted a majority stake and a stronger grip on OpenAI’s direction, but Altman and the rest of the leadership weren’t on board. Feeling shut out, Musk walked away.

Since then, he hasn’t exactly moved on. He’s taken OpenAI and Altman to court, voiced strong opinions about the dangers of artificial general intelligence (AGI), and repeatedly accused the company of straying from its original mission. His criticism isn’t just about business—he seems genuinely concerned about where AI is heading.

So, is Musk fighting for a cause, or is this just another billionaire power struggle?

What Is Musk’s Real Game?

Some believe Elon Musk is just pretending to champion open-source AI, using this bold move as a way to throw OpenAI off balance. If OpenAI gets caught up in legal distractions, his own AI venture, xAI, might gain the time it needs to catch up. Even Sam Altman hinted at this in a Bloomberg interview, suggesting Musk should focus on “building a better product” rather than trying to disrupt OpenAI.

While a ‘no’ likely means no, Musk’s surprise offer could still create hurdles for Altman. His long-term goal is to turn OpenAI into a profitable business, but this kind of interference might complicate that transition.

Jim Lundy, Founder and CEO of Aragon Research, points out that this battle highlights a deeper struggle—one between the ideals of open-source AI, the pursuit of profit, and the growing influence of tech giants in shaping the future of artificial intelligence. With powerful investors involved and legal fights brewing, the stakes couldn’t be higher.

Has Musk made a genius move? Whether he wins or loses, his actions could make OpenAI’s shift from nonprofit to for-profit incredibly costly.

Under U.S. law, if OpenAI wants to transition, it must pay ‘fair value’ for its nonprofit assets—including ChatGPT. This means Altman might have to secure even more funding, making the process far more expensive and complicated.

But beyond the corporate power plays and legal red tape, there’s a bigger picture. What does this bid really mean for the AI industry? That’s the question that could shape the future of artificial intelligence as we know it.

A Turning Point for Open Source AI

Some experts worry that OpenAI might lose its edge as China’s DeepSeek and other open-source AI platforms gain momentum. The competition is heating up, and if OpenAI doesn’t adapt, it could fall behind.

Shifting to an open-source model could be a game-changer, especially for businesses. It would give corporate clients the freedom to create custom applications using OpenAI’s technology without being tied to costly licensing fees. Independent developers and coding enthusiasts would also get more room to innovate, experiment, and push AI technology forward in new ways.

Of course, such a shift would mean rethinking OpenAI’s business strategy. But ironically, embracing openness could actually make the company stronger. By competing on innovation rather than exclusivity, OpenAI could solidify its position in an AI landscape increasingly dominated by open-source alternatives.

After all, OpenAI was founded on the vision of making AI accessible to humanity—it’s right there in the name. Maybe, just maybe, returning to those roots could be not just the right move ethically, but also a smart one financially.

Uncertainty for Corporate Customers & Key Partners

Elon Musk’s attempt to take over OpenAI has created a storm of uncertainty, coming at a time when the company is already facing fierce competition and trying to redefine its future.

Even though the offer has reportedly been turned down, Musk is not someone who gives up easily. If this turns into a prolonged power struggle, it could unsettle OpenAI’s corporate customers and put key partnerships—especially with Microsoft—at risk. Microsoft has deeply integrated OpenAI’s language models into its cloud services, and any instability could make them rethink their strategy.

But not all of this is necessarily bad news. According to Aragon’s Lundy, businesses should keep a close eye on this situation because, in the long run, it could attract more investors to AI. He explains:

“Despite the differences between Musk and Altman, this takeover attempt could push more investment into AI hardware and software, accelerating the industry’s growth.”

Is Altman’s Rejection the Final Word?

Even as CEO, Sam Altman doesn’t have the sole authority to accept or reject Elon Musk’s offer. OpenAI’s nonprofit board must legally evaluate the proposal, considering both the company’s assets and the impact of controlling its AI development.

On Tuesday, Altman reassured OpenAI staff in a Slack chat that the board had no plans to entertain Musk’s “embarrassing” offer. His words carried a tone of confidence, almost frustration, as if he found the whole situation absurd.

But Musk wasn’t ready to back down. Just a day later, he raised the stakes—stating he’d withdraw his bid if OpenAI halted its transition to a for-profit model. It was a bold move, a challenge that left everyone wondering—who would make the next move?

The Bottom Line

It’s tough not to feel a little sympathy for Altman. Going up against Musk is never an easy game, and this latest twist feels eerily familiar.

Back in 2022, Musk’s $44 billion takeover of Twitter started the same way—an unexpected bid, followed by a legal showdown with its board. And guess who was right in the middle of that fight? Bret Taylor, the same person now leading OpenAI’s board. It’s like history is repeating itself, only with different stakes.

FAQs

Did Elon Musk offer to buy OpenAI?

Yes, on Monday, February 10, 2025, Elon Musk made headlines by announcing that he was leading a group of investors in an attempt to buy OpenAI. The reported offer was a staggering $97.4 billion. His move sparked widespread discussion, with some seeing it as a bold step and others questioning his true intentions.

Who owns 51% of OpenAI?

OpenAI's for-profit subsidiary, OpenAI Global, LLC, is 51% controlled by OpenAI Inc., the nonprofit organization that originally founded the company. The remaining 49% is owned by Microsoft. This unique structure has led to ongoing debates about the balance between innovation, ethics, and corporate influence.

How much of OpenAI does Sam Altman own?

Surprisingly, Sam Altman, the CEO of OpenAI, doesn’t own any equity in the company. In 2024, he was paid a modest salary of $76,000—a stark contrast to the billions his company interacts with. However, Altman was already wealthy before joining OpenAI and has described leading the company as his "dream job," showing his passion goes beyond financial gain.

Is OpenAI making a profit?

OpenAI operates with a massive ‘burn rate,’ spending billions on research, computing power, and improving its AI models. Despite its groundbreaking advancements, the company was expected to lose around $5 billion in 2024. It’s a classic case of high investment in the hopes of an even bigger future return—a gamble that could shape the future of AI.