Elon Musk Leads $97B Bid to Reclaim OpenAI

Elon Musk, the billionaire entrepreneur and CEO of SpaceX and Tesla, has led an investor group in submitting a $97.4 billion bid to acquire OpenAI, the artificial intelligence company he co-founded in 2015. The offer, made to OpenAI's board of directors on Monday, comes as the company is planning to transition from a nonprofit to a for-profit structure by 2026.

The investor consortium includes several firms with previous connections to Musk's ventures. Baron Capital Group, which holds major stakes in Tesla and SpaceX, joined the bid alongside Valor Equity Partners, Atreides Management, Vy Capital, and 8VC. Ari Emanuel, CEO of entertainment company Endeavor, also participated through his investment fund.

Marc Toberoff, Musk's attorney, delivered the offer to OpenAI's board. The group stated they would match any higher bids that might emerge. Their stated goal is to return OpenAI to its original mission as an open-source, safety-focused organization.

OpenAI's CEO Sam Altman responded swiftly to the offer with a dismissive tweet, stating "no thank you, but we will purchase Twitter for $9.74 billion if you're interested." This response suggests tension between the two tech leaders.

The timing of the bid appears strategic, as OpenAI is currently working to complete its transition to a for-profit company by late 2026. This shift is part of a $6.6 billion funding round from last October that valued the company at $157 billion.

Each investor in the consortium has prior experience with Musk's companies. Ron Baron's Baron Capital manages funds with large investments in Tesla and SpaceX. Gavin Baker of Atreides Management previously invested in SpaceX during his time at Fidelity and has supported Musk's Tesla compensation package.

Antonio Gracias, founder of Valor Management, served on Tesla's board and invested early in SpaceX. Alexander Tamas's Vy Capital holds stakes in multiple Musk ventures, including The Boring Company and Neuralink. Joe Lonsdale, who leads 8VC, has publicly supported Musk's projects.

The bid follows recent developments in the AI industry. Figure AI, a robotics startup, recently ended its partnership with OpenAI, citing a "major breakthrough" in robot intelligence. This separation occurred shortly after the companies had announced a collaboration alongside a $675 million