Elon Musk Makes $97.4 Billion Bid to Take Control of OpenAI

A Deal That Raises Questions

Elon Musk has launched a $97.4 billion bid to take control of OpenAI, the nonprofit organization that controls the company’s for-profit arm. A group of investors led by Musk submitted an unsolicited offer to the company’s board of directors on Monday. The group wants to buy the nonprofit that controls OpenAI’s for-profit arm.

A Rejection by OpenAI

When asked for comment, an OpenAI spokesperson pointed Engadget to an X post from CEO Sam Altman. "No thank you but we will buy Twitter for $9.74 billion if you want," Altman wrote on the social media platform Musk owns.

Musk’s Statement

"It’s time for OpenAI to return to the open-source, safety-focused force for good it once was," Musk said in a statement his attorney shared with The Wall Street Journal. "We will make sure that happens."

The Impact of a Revlon Moment

If OpenAI were to become a for-profit company with traditional shares, Musk’s bid would likely trigger what’s known in corporate law as a Revlon moment, where, under certain circumstances, the company’s board of directors would be forced to sell the company to the highest bidder to maximize shareholder profits.

A Response from Altman

Musk, as you can imagine, wasn’t a fan of Altman’s joke, writing "Swindler" in response and later calling him "Scam Altman."

The Potential for a Deal

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