Elon Musk’s X.AI has launched a $97.4 billion bid to take control of OpenAI, marking the latest chapter in his ongoing feud with CEO Sam Altman over the company’s direction. The bid, reported by The Wall Street Journal, is an unsolicited offer from Musk and a consortium of investors, including Joe Lonsdale and Ari Emanuel. If successful, X.AI and OpenAI would merge under Musk’s leadership.
The offer is significantly below OpenAI’s recent valuation, as Bloomberg reported the company is currently raising funds at a $300 billion valuation. Musk, who co-founded OpenAI but departed over strategic disagreements, has repeatedly criticized Altman for shifting the company from a nonprofit to a for-profit model. While Musk has previously supported OpenAI’s original nonprofit mission, his bid signals a desire to regain influence over what he calls the most powerful technology in the world.
With OpenAI’s Stargate infrastructure project underway and its financial structure evolving, the bid raises questions about its feasibility. However, the move underscores Musk’s ambition to reshape the future of AI under his leadership.