# Elon Musk Proposes $97.4 Billion to Purchase OpenAI Amid Dispute with Sam Altman
In a surprising development in the AI sector, billionaire business magnate **Elon Musk** has submitted an unsolicited **$97.4 billion proposal** to acquire **OpenAI, Inc.** This offer, supported by a consortium of investors, arises during Musk’s ongoing dispute with OpenAI CEO **Sam Altman**.
## Musk’s Aspirations for OpenAI
Musk, who was a co-founder of OpenAI in **2015** but exited the board in **2018**, has criticized the organization’s transition to a **for-profit** framework. In a statement to *The Wall Street Journal*, Musk outlined his intention to steer OpenAI back to its foundational purpose:
> *“It’s time for OpenAI to revert to the open-source, safety-oriented initiative for good that it used to be. We will ensure that happens.”*
His AI venture, **xAI**, is supporting the proposal, and should the acquisition succeed, OpenAI might potentially integrate with xAI.
## Who’s Supporting Musk’s Proposal?
Musk’s proposal is backed by several prominent investors, including:
– **Valor Equity Partners**
– **Baron Capital**
– **Atreides Management**
– **Vy Capital**
– **8VC**
– **Endeavor CEO Ari Emanuel**
Musk’s lawyer, **Marc Toberoff**, indicated that the consortium is prepared to **match or surpass any rival offers**. He also posited that if OpenAI continues its transition to a **fully for-profit** entity, its original nonprofit framework should be adequately compensated for relinquishing oversight of such a transformative technology.
## Sam Altman’s Reaction
In an unexpected retort, **Sam Altman took to X (formerly Twitter)** and humorously proposed purchasing **Twitter for $9.74 billion**—a clear jab at Musk, who acquired the platform (now called X) for **$44 billion** in 2022.
## The Background of Musk and OpenAI
Musk and Altman co-established OpenAI in **2015** with aims of creating **safe and beneficial artificial intelligence**. However, Musk stepped down from the board in **2018**, citing possible conflicts with **Tesla’s AI initiatives**. Altman has implied that Musk’s departure was due to the board’s refusal to grant him complete control over the organization.
Since then, Musk has been **extremely critical** of OpenAI’s trajectory, particularly its collaboration with **Microsoft** and its choice to keep certain AI advancements proprietary rather than adopting an open-source approach.
## What’s on the Horizon?
Musk’s **$97.4 billion offer** places OpenAI’s board in a precarious situation. Should they decline the proposal, they may face increased scrutiny regarding their **corporate governance and decision-making**. Conversely, accepting could trigger a significant upheaval in the AI industry, potentially merging OpenAI with Musk’s **xAI**.
As AI emerges as one of the most **valuable and competitive** fields in technology, this clash between Musk and Altman may have **significant implications** for the future of artificial intelligence.
### Will OpenAI agree to Musk’s proposal? Or will this rivalry intensify? Stay tuned for further developments.
