Elon Musk Threatens to Withdraw $97.4 Billion OpenAI Takeover Bid

The world’s wealthiest entrepreneur, Elon Musk, has issued a stark ultimatum regarding his £97.4 billion bid for OpenAI, stating he will withdraw the offer if the board continues its planned conversion to a for-profit organisation.

Legal representatives for Musk filed court documents on Wednesday, emphasising their client’s position: “If [the] OpenAI board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid.”

The contentious bid, which includes backing from prominent investment firms Baron Capital Group, Valor Management and Atreides Management, sits significantly below OpenAI’s most recent valuation. Market observers note the offer represents a substantial discount to the £157 billion valuation achieved in October 2024, with recent discussions suggesting a potential worth of £300 billion.

OpenAI’s chief executive, Sam Altman, swiftly dismissed the proposal on social media platform X, responding with a pointed jab at Musk’s previous Twitter acquisition: “No thank you, but we will buy Twitter for $9.74 billion if you want.” The exchange quickly descended into personal attacks, with Musk labelling his former colleague “Scam Altman.”

Speaking to Bloomberg Television, Altman suggested the bid might be a tactical manoeuvre, stating: “I think he is probably just trying to slow us down. He obviously is a competitor.” The OpenAI chief added that Musk’s approach to competition through “many lawsuits” and “other crazy stuff” reflected a position of insecurity.

The deteriorating relationship between the two tech moguls highlights the intensifying battle for dominance in artificial intelligence development, with Musk’s own AI venture, xAI, now directly competing against the ChatGPT creator.