Tech Billionaires Clash Over AI Future Amid Legal Battles
In a dramatic escalation of tensions between two of Silicon Valley’s most influential figures, OpenAI CEO Sam Altman has publicly rejected a $97 billion acquisition offer from a consortium led by Tesla and SpaceX CEO Elon Musk. The bid, which aimed to take control of OpenAI and revert it back to a nonprofit research entity, was met with a swift and sarcastic dismissal from Altman.
The Offer and Altman’s Response
Elon Musk, along with his AI company xAI and a group of heavyweight investors—including Baron Capital Group, Valor Management, Atreides Management, Vy Fund, and Eight Partners VC—proposed the multi-billion-dollar deal to take over OpenAI.
However, rather than engaging in negotiations, Altman dismissed the offer on Musk’s own social media platform, X (formerly Twitter), writing, “No thank you, but we will buy Twitter for $9.74 billion if you want.” This remark was a direct jab at Musk, who purchased Twitter in 2022 for $44 billion, only to face ongoing challenges in managing the platform.
Long-Standing Feud Between Musk and OpenAI
Musk and Altman’s conflict dates back to 2015, when both co-founded OpenAI with the mission of developing artificial intelligence for the public good. However, Musk left OpenAI’s board in 2018 after disagreements over its strategic direction.
Since then, the rift has deepened, particularly after OpenAI transitioned from a nonprofit to a for-profit entity and formed a lucrative partnership with Microsoft. Musk, who had initially invested $45 million in OpenAI, has been vocal in criticizing the company, claiming it has strayed from its original mission and now prioritizes corporate profits over ethical AI development.
Musk’s Legal Battle Against OpenAI
Musk has taken legal action against OpenAI, filing lawsuits in both California state and federal courts, alleging that the company violated its foundational agreements. His legal team, led by attorney Marc Toberoff, argues that OpenAI’s shift to a for-profit structure is a betrayal of its original purpose.
In a recent California federal court hearing, U.S. District Judge Yvonne Gonzalez Rogers acknowledged Musk’s claims as “plausible” but expressed skepticism that he could prove irreparable harm. The judge has yet to rule on Musk’s request for a court order to block OpenAI from further transitioning into a for-profit entity but has allowed the case to move toward trial in 2026.
Microsoft’s Role and Concerns Over AI Control
A significant aspect of Musk’s concerns revolves around OpenAI’s deepening relationship with Microsoft, which has invested billions of dollars into the company. The software giant has integrated OpenAI’s technology, including ChatGPT and DALL·E, into its products such as Microsoft Copilot and Azure AI.
During the court hearing, Judge Gonzalez Rogers raised concerns about OpenAI’s dealings with Microsoft, hinting that the case could expose whether the company has ceded too much control over its AI advancements to a corporate partner.
Musk’s Vision for OpenAI
If successful in acquiring OpenAI, Musk and his consortium plan to return it to a nonprofit model, ensuring that AI advancements remain open-source and accessible to the public. Toberoff argued that OpenAI’s current board must either honor its nonprofit obligations or compensate the public for what is being taken away—control over one of the most powerful AI technologies in the world.
“Musk, as an OpenAI co-founder and a proven tech leader, is the best person to protect and expand OpenAI’s capabilities,” Toberoff stated.
What’s Next?
With Altman firmly rejecting the offer and Musk’s lawsuits moving forward, the battle for OpenAI’s future is far from over. As artificial intelligence continues to reshape industries worldwide, the outcome of this legal and corporate struggle could have major implications for the AI sector, technology regulations, and the balance between profit-driven innovation and ethical AI development.
For now, Altman’s defiance and Musk’s persistence ensure that OpenAI will remain at the center of one of the most high-profile tech conflicts in recent history.
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