The rivalry between OpenAI CEO Sam Altman and billionaire entrepreneur Elon Musk has intensified following a massive $97.4 billion buyout offer for OpenAI. Altman rejected the deal outright and took a personal jab at Musk, saying, “I don’t think he’s a happy person. I feel for him.”
The offer, led by Musk and a group of investors, aimed to acquire OpenAI, but Altman dismissed it, stating that Musk was attempting to slow OpenAI’s progress. Speaking at the Paris AI Action Summit, Altman suggested that Musk’s move was just another episode in his long history of controversial tactics.
Musk, a co-founder of OpenAI who parted ways with the company in 2018, has since become a direct competitor with his AI venture, x.AI. Over the years, he has repeatedly criticized OpenAI, accusing it of straying from its original nonprofit mission by pursuing profit-driven goals.
Legal battles have also fueled the feud. Musk initially sued OpenAI in mid-2024, claiming the company had abandoned its founding principles. However, he later dropped the lawsuit after OpenAI released emails allegedly showing Musk himself advocating for monetization. In August 2024, Musk filed a new lawsuit, accusing OpenAI of prioritizing profit over AI safety and even engaging in racketeering.
Altman, in response, insisted that OpenAI remains committed to its nonprofit foundation despite exploring new corporate structures. “The nonprofit will continue to be extremely important; it will drive the mission and will continue to exist,” he said.
Musk’s offer could complicate OpenAI’s efforts to restructure its for-profit unit. As a nonprofit-controlled entity, OpenAI is not obligated to maximize returns, but the staggering $97.4 billion valuation could force it to justify any alternative moves.
Amid the escalating tensions, Altman remains focused on OpenAI’s future. “I wish [Musk] would just compete by building a better product,” he said. “We’ll try to just put our head down and keep working.”
As the battle over AI dominance intensifies, OpenAI faces a challenging road ahead, navigating legal disputes, business restructuring, and high-stakes competition in the rapidly evolving artificial intelligence industry.
