Elon Musk’s $97.4 Billion Offer to Acquire OpenAI Rejected: A New Chapter in the AI Power Struggle

In a bold move that has sent ripples through Silicon Valley and the broader tech industry, the board of directors at OpenAI has officially rejected a staggering $97.4 billion acquisition offer led by billionaire entrepreneur Elon Musk. The proposal, reportedly backed by a consortium of investors aligned with Musk’s vision for artificial intelligence, was declined unanimously by OpenAI’s board, reaffirming their commitment to their long-standing mission.

“OpenAI is not for sale,” declared board chairman Bret Taylor in a press release. “The board has unanimously rejected Mr. Musk’s latest attempt to disrupt his most formidable competitor in the AI space.”

A Rejected Offer, A Longstanding Rivalry

The rejection marks the latest chapter in a long and increasingly personal conflict between Musk and OpenAI—a company he co-founded but parted ways with in 2018. While Musk has frequently criticized the direction the company has taken under CEO Sam Altman, his recent acquisition bid represented the most aggressive attempt yet to reclaim influence over the organization.

According to insiders familiar with the offer, Musk and his investors proposed buying a controlling stake in OpenAI with the aim of returning the company to its nonprofit roots. Their plan emphasized AI safety, transparency, and open-source development—values that Musk claims have been abandoned in OpenAI’s shift toward profitability.

Had the deal gone through, it would have potentially triggered one of the most significant shake-ups in the artificial intelligence sector. Musk’s own AI firm, xAI, has quickly risen as a direct rival to OpenAI, intensifying tensions between the two camps.

Altman’s Sarcastic Response and a Bitter Legal History

The board’s rejection was followed by a pointed response from OpenAI CEO Sam Altman on X (formerly Twitter). “No, thanks,” Altman posted. “But if he’s interested, we’d be happy to buy Twitter back for $9.74 billion.”

This sarcastic jab is the latest in a series of escalating public exchanges between the two tech titans. Their professional split, once framed as an amicable departure, has deteriorated into legal disputes and biting commentary.

In June 2024, Musk filed a lawsuit against OpenAI, accusing the company of prioritizing profits over public interest. However, his position was undercut when OpenAI released internal emails in which Musk himself appeared to support the need for commercial viability to sustain the company’s long-term operations. Following the revelations, Musk quietly dropped the case.

Undeterred, Musk filed a second lawsuit in August 2024, this time accusing OpenAI of pursuing artificial general intelligence (AGI) solely to maximize corporate profit. His legal team alleged “organized fraud,” reigniting debate about the company’s current trajectory.

OpenAI, in turn, has publicly questioned Musk’s motives. “Elon is bitter he’s no longer involved,” a senior executive told [Newspaper Name] on condition of anonymity. “He wanted Tesla to acquire OpenAI back in 2018, but the founders disagreed. This is just the latest attempt to regain control.”

Did the Board Breach Fiduciary Duty?

The decision to reject such a high-value offer has sparked legal scrutiny. Marc Toberoff, legal counsel for Musk’s investor group, criticized the board’s action as potentially irresponsible.

“They’re essentially selling the company to themselves at a deeply discounted valuation,” Toberoff argued. “Someone has to explain how rejecting a nearly $100 billion offer is in the best interest of humanity.”

Under U.S. nonprofit governance laws, OpenAI’s board has a fiduciary responsibility to evaluate all offers in good faith, especially when they claim to represent the broader interests of society. Legal analysts say if it’s proven that the board rejected Musk’s proposal without proper due diligence or justification, they could face potential legal consequences.

Still, OpenAI maintains that all decisions surrounding its restructuring and funding model are designed to ensure that AGI development benefits the public. “We will not sell this company to private interests who may not share our mission,” the board reiterated in a statement.

Philosophical Clash Over the Future of AI

The divide between Musk and Altman is not just financial—it’s deeply philosophical. In a widely viewed interview at the Paris AI Summit earlier this year, Altman didn’t mince words.

“I wish Elon would just compete by building something better,” Altman said during his appearance on Bloomberg TV. “If he truly believes in what he’s doing with xAI, then let’s see it.”

Musk, who has positioned himself as a guardian against the misuse of artificial intelligence, has grown increasingly vocal about the dangers of AGI being controlled by a small number of powerful corporations. He insists that AI should remain open-source and regulated by the public interest—not steered by profit-driven shareholders.

However, critics argue that Musk’s involvement in xAI—which has itself raised billions in venture capital—undermines his narrative. While he continues to warn of AI’s existential risks, his company has aggressively recruited talent and filed patents, positioning itself as a major commercial player.

What Comes Next?

With the board’s rejection now public, the future course of this conflict remains uncertain. Musk could return with an even larger offer or rally public opinion and investor support to challenge the board’s decision. He may also choose to double down on xAI, betting that market success will speak louder than boardroom politics.

Meanwhile, OpenAI is moving forward with its ambitious restructuring, shifting from its nonprofit origins into what some have called a “capped-profit” hybrid. This model is designed to balance mission-alignment with the need for massive funding—an approach still being watched closely by ethicists, regulators, and tech investors alike.

While OpenAI insists that it remains committed to AI safety and broad benefit, some industry observers worry that the mounting competition between powerful actors like Musk and Altman could escalate into a dangerous arms race.

“The stakes are enormous,” said Dr. Lila Sharma, a policy expert at the Center for AI Governance. “This is not just a corporate fight—it’s a battle over who gets to shape the future of intelligent machines.”

A Battle Far From Over

One thing is certain: Musk’s battle for influence in the AI world is far from over. Whether through litigation, acquisition, or market dominance, he appears determined to shape the development of artificial intelligence on his own terms.

For now, OpenAI remains independent—and perhaps more embattled than ever. But in an industry where fortunes shift overnight, today’s rejection may only be a prelude to tomorrow’s power play.