Billionaire entrepreneur Elon Musk offers $97 billion to purchase OpenAI, a leading artificial intelligence research organization.
In the world of artificial intelligence (AI), a dramatic battle is unfolding between tech mogul Elon Musk and OpenAI, the non-profit organisation he co-founded in 2015 alongside current CEO Sam Altman.
The public fallout between Musk and Altman began in 2018 when Musk resigned from the OpenAI board, citing differences in vision and strategy. Fast forward to 2025, and the tension between the two parties has escalated into a legal battle, with Musk making a $97.4 billion bid through his company xAI to acquire OpenAI.
Musk's bid specifically targets the non-profit arm of OpenAI, which was valued at $157 billion in its most recent funding round. However, as of August 2025, there is no publicly confirmed deal or status indicating that Musk has succeeded in acquiring OpenAI's non-profit arm. Instead, OpenAI and Musk are engaged in legal battles related to his attempts to gain control or interfere with the company’s operations.
OpenAI countersued Musk on April 9, 2025, accusing him of "bad-faith tactics" aimed at slowing its progress and seizing its innovations. Despite the legal hurdles, Musk's bid represents a pivotal moment in the evolution of AI and the tech industry, potentially shaping the future of artificial intelligence and the tech landscape.
The fate of OpenAI is uncertain. Whether it will return to its non-profit origins or embrace a for-profit future remains uncertain. If Musk were to acquire or exert control over OpenAI’s non-profit arm, it could significantly alter OpenAI’s mission and governance structure, potentially shifting from its original public-benefit focus. However, given the countersuit and the lack of acquisition progress, such a change is highly uncertain and not imminent.
In the meantime, OpenAI continues to advance its AI developments independently. The company launched GPT-5 in August 2022, seen as a major upgrade and a significant step toward artificial general intelligence (AGI). Musk’s AI company xAI is also directly competing, with its own upcoming model Grok 5 expected by the end of 2025.
The ongoing rivalry, legal disputes, and competition between Musk’s xAI and OpenAI underscore a fragmented AI development environment, which could accelerate innovation but also increase market and governance tensions. OpenAI's large fundraising and infrastructure deals, such as its $40 billion funding round and partnership with CoreWeave, suggest strong institutional support and independence from Musk’s influence as of 2025.
OpenAI gained widespread recognition following the release of ChatGPT in late 2022. Musk, however, has expressed his reservations about the move and advocates for OpenAI to return to its roots as an open-source, safety-focused entity.
As the battle for the soul of OpenAI rages on, the world watches with bated breath, potentially shaping the future of artificial intelligence and the tech landscape.
- As Musk's xAI and OpenAI engage in legal battles related to his bid to acquire OpenAI's non-profit arm, the future of the tech industry seemingly hangs in the balance, with both parties representing significant players in the technology, finance, and business sectors.
- The ongoing competition between Musk's xAI and OpenAI, propelled by their contrasting visions for the future of artificial intelligence, has the potential to reshape the landscape of technology and finance, particularly in the realms of AI research, development, and commercialization.
