Elon Musk Challenges OpenAI’s Shift to Profitability with Bold $97.4 Billion Bid

Elon Musk has once again stirred the tech world with his latest move, launching a $97.4 billion bid alongside a group of investors to acquire OpenAI’s nonprofit division. Announced on February 10, 2025, this dramatic proposal comes as Musk voices concerns that OpenAI, an organization he helped fund, is straying from its original mission. He argues that the company is transitioning into a profit-driven entity, contradicting its founding principles.

The Power Struggle Over OpenAI

Musk has never shied away from challenging the direction of artificial intelligence. As one of OpenAI’s original backers, he contributed $50 million before stepping away from the board in 2018. Since then, OpenAI has undergone a significant transformation, shifting from a nonprofit to a capped-profit model in 2019. This change allowed investors to earn returns but with theoretical limits on financial gain.

Recently, however, OpenAI has shown signs of shifting even further toward a fully for-profit model. Concerned by this development, Musk made his position clear during the World Governments Summit in Dubai. He has issued an ultimatum to OpenAI—either halt the transition or accept his offer to acquire its nonprofit arm.

A Public Feud Between Tech Titans

The conflict between Musk and OpenAI’s CEO, Sam Altman, has been ongoing for years, but it has now reached new heights. Altman immediately dismissed Musk’s bid, labeling it an attempt to disrupt OpenAI’s progress. In a statement on February 11, 2025, he said he does not consider Musk’s offer particularly credible.

Musk, in response, has been vocal in his criticism of OpenAI’s new direction. He likened its transition to an environmental nonprofit suddenly embracing deforestation, suggesting that the company has lost sight of its initial purpose. In a cutting remark, he even suggested renaming OpenAI to Maximum Profit AI or Closed for Voracious Profit to better reflect its current state.

What’s at Stake?

Despite the eye-catching price tag of Musk’s bid, his true demand is clearer in a recent court filing submitted on February 12, 2025. According to the document, Musk is open to walking away from the offer if OpenAI commits to halting its transition into a fully profit-focused entity.

Advocates for OpenAI’s current model argue that maintaining a nonprofit structure is insufficient to advance AI at scale. Altman and his leadership team believe securing high-level investment is essential to sustain the computing power, research, and innovation required for global AI leadership. They maintain that evolving OpenAI’s business model is necessary to keep pace with rapid technological advancements.

What Comes Next for OpenAI and Musk?

The outcome of this high-profile standoff remains uncertain. Will OpenAI double down on its current path and reject Musk’s proposal outright? Or will the mounting financial and public scrutiny force a reconsideration of its strategy?

One thing is clear: the debate over AI’s future isn’t just about technology. It is shaped by powerful personalities, business rivalries, and ideological clashes over how artificial intelligence should be developed and monetized. As Musk and Altman continue to clash, the consequences of their dispute will likely influence the trajectory of AI for years to come.