Elon Musk's $97.4 Billion Cash Bid to Buy OpenAI Faces Rejection
A consortium led by Elon Musk offers $97.4 billion in cash to purchase OpenAI, setting a May deadline. OpenAI's CEO dismisses the unsolicited bid amid an ongoing legal battle over the company's nonprofit status.
A group of investors led by Elon Musk’s x.AI offers $97.4 billion in cash to purchase OpenAI. The unsolicited bid sets a firm deadline of May 10, 2025, though it expires early if OpenAI formally rejects the proposal in writing. Despite public dismissals from CEO Sam Altman, the board legally evaluates the massive offer rather than dismissing it outright.
The all-cash transaction relies on a consortium of seven named investors, including venture capital firms like 8VC and Vy Capital, rather than Musk's personal fortune. Before finalizing any deal, the buying group demands full access to OpenAI's financial records, facilities, and personnel for interviews. This standard due diligence process potentially gives Musk's competing AI company a deep look into OpenAI's inner workings.
This acquisition attempt directly ties into Musk's ongoing lawsuit aimed at blocking OpenAI's planned conversion from a nonprofit to a for-profit entity. Altman's lawyers argue that Musk cannot simultaneously try to buy the company and stop its restructuring. In response, Musk's team states it withdraws the $97.4 billion bid entirely if OpenAI drops its plans to change its nonprofit status.