Elon Musk’s $97.4 Billion OpenAI Takeover Bid Rejected – The AI War Heats Up

Musk’s Bid for AI Dominance Hits a Wall

San Francisco, CA – In a stunning turn of events, OpenAI’s board has unanimously rejected Elon Musk’s colossal $97.4 billion acquisition bid, setting the stage for an intense power struggle in the AI industry. The decision, announced late last week, solidifies OpenAI’s stance against being overtaken by its former co-founder, whose growing criticisms of the AI research company have evolved into an all-out battle for control.

A Billionaire’s Bid and a Resounding Rejection

The saga began on February 10, 2025, when Musk, backed by xAI and a group of deep-pocketed investors, made an aggressive bid to seize OpenAI’s nonprofit parent entity. Musk has long accused OpenAI of abandoning its founding mission, shifting towards profit-driven AI development in collaboration with Microsoft. His offer sought to “restore” OpenAI’s nonprofit status and steer its development towards open-source AI advancements.

However, OpenAI’s leadership swiftly shut down the bid. In a fiery statement, Board Chair Bret Taylor reinforced the company’s commitment to independence:

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition.”

Additionally, OpenAI’s chief attorney William Savitt called Musk’s offer a thinly veiled attempt to control the most powerful AI company in the world, stating in a letter:

“This proposal is not in the best interests of OpenAI’s mission and is rejected.”

The Legal Showdown – What’s at Stake?

Musk’s rejection didn’t emerge in a vacuum. For nearly a year, he has been embroiled in a lawsuit against OpenAI, alleging that it has breached its founding principles and engaged in unfair business practices.

His 2024 lawsuit initially targeted OpenAI but later expanded to include Microsoft, which he claims has undue influence over the company’s direction. Musk’s legal team seeks a court ruling to halt OpenAI’s for-profit transformation and force it back into its original nonprofit model.

Adding fuel to the fire, his takeover bid coincided with new court filings, further intensifying speculation that Musk is using legal pressure as leverage to force OpenAI’s hand.

A Strategic Play or a Desperate Attempt?

With Musk’s bid now firmly rejected, many industry analysts question his endgame. Is this part of a broader strategy to stall OpenAI’s progress while Musk’s xAI plays catch-up? Or is it a desperate maneuver to regain control over an entity he helped create?

An unexpected twist emerged when OpenAI’s CEO Sam Altman reportedly joked that if Musk had billions to spare, he should consider selling X (formerly Twitter) instead. While said in jest, the comment underlined the deeply personal nature of this battle.

Meanwhile, OpenAI is charging forward with its AI ambitions, leveraging its deep Microsoft partnership to push boundaries in enterprise AI adoption and next-generation AI models.

What’s Next? The Future of OpenAI & the AI Race

The rejection of Musk’s bid solidifies OpenAI’s path forward, but it’s unlikely Musk will back down. With legal battles looming, xAI’s growing influence, and the broader AI power struggle intensifying, the coming months will be pivotal.

Will OpenAI maintain its independence and technological dominance, or will Musk’s relentless pursuit shake up the AI landscape? One thing is certain: the battle for AI supremacy is just beginning.

📢 FAQs – What You Need to Know

❓ Why did OpenAI reject Elon Musk’s bid?
✔ OpenAI believes Musk’s bid is a strategic move to disrupt its leadership and gain control over AI’s most powerful entity.

❓ What is Musk’s lawsuit against OpenAI about?
✔ Musk claims OpenAI has abandoned its nonprofit principles and is unfairly aligned with Microsoft.

❓ How will this impact the AI industry?
✔ The decision reaffirms OpenAI’s independence but sets the stage for fierce competition between OpenAI, xAI, and other AI firms.

❓ What’s next for OpenAI?
✔ OpenAI continues its partnership with Microsoft and aims to expand its AI dominance in 2025 and beyond.

🚀 Stay tuned for more updates as this AI battle unfolds!