Elon Musk appears to be taking steps to limit the expansion of Sam Altman’s artificial intelligence company, OpenAI. Experts suggest that his recent bid for OpenAI might not have been a serious attempt to purchase the company but rather a strategic move to slow its transformation. OpenAI’s board of directors has officially rejected Musk’s offer, which was nearly $100 billion, for the company behind ChatGPT—the world’s most well-known AI tool.
Musk’s Strategy to Influence OpenAI’s Future
Although OpenAI refused the offer, some analysts believe Musk’s move still serves his interests. By making this bid, he may have increased the financial burden of OpenAI’s transition from a non-profit-controlled entity to a fully for-profit company.
“Musk is essentially working to slow OpenAI’s trajectory,” said Johnnie Penn, associate teaching professor at the University of Cambridge.
Last week, Musk, alongside a group of investors including Hollywood superagent Ari Emanuel, submitted a $97.4 billion offer for OpenAI’s assets. The bid was significantly lower than OpenAI’s $157 billion valuation from just four months ago. Some even estimate the company’s current value to be around $300 billion, making Musk’s offer far below its potential worth.
The Complex Structure of OpenAI
OpenAI operates under a unique structure that blends both non-profit and for-profit business elements. Altman has reportedly been working on removing OpenAI’s non-profit board, but this process comes with significant financial and legal challenges. Some experts suggest Musk’s bid was designed to increase the complexity and cost of this transition.
“What Musk is doing is increasing the perceived value of OpenAI’s non-profit arm, forcing OpenAI to pay more to dissolve its obligations to its own non-profit,” said Dr. Penn.
The actual value of OpenAI’s non-profit assets remains unclear. However, Lutz Finger, senior lecturer at Cornell University and CEO of AI startup R2Decide, pointed out that Musk’s bid effectively set a price for OpenAI’s non-profit arm.
“By putting a price tag on the non-profit side, Musk makes it much more expensive for Altman to separate it,” Finger explained. “It’s a simple but effective tactic.”
Musk’s AI Struggles and Business Motivations
Musk has stated that he wants to bring OpenAI back to its original mission—developing AI for the benefit of humanity rather than profit. However, critics argue that his interest is primarily driven by his own AI ventures, such as xAI and chatbot Grok, which have struggled to gain significant traction.
“Musk missed the AI train. He’s behind and trying various ways to catch up,” said Finger.
The rivalry between Musk and Altman has become increasingly heated. When Altman dismissed Musk’s bid on X (formerly Twitter), Musk called him a “swindler.” In response, Altman stated in a Bloomberg interview that Musk is “not a happy person” and acts from a “position of insecurity.”
Legal Battles and Future Implications
The dispute has now moved to the courts. U.S. District Judge Yvonne Gonzalez Rogers is currently reviewing Musk’s request for an injunction to block OpenAI’s restructuring efforts. Musk’s legal team argues that he will suffer irreparable harm if OpenAI is allowed to proceed with its changes.
“It’s possible Musk’s claims are valid. We’ll find out when he testifies,” Judge Gonzalez Rogers stated during a recent hearing in Oakland, California.
However, OpenAI’s lawyers argue that Musk’s position is inconsistent. In legal filings, they highlighted that Musk previously claimed OpenAI’s assets could not be transferred for private gain.
“Out of court, those restrictions seem to disappear—if Musk and his allies are the buyers,” OpenAI’s legal team wrote.
The Bigger Picture
Many industry experts believe Musk never intended to close the deal. “I think he’s just stirring up controversy,” said Karl Freund, founder of Cambrian-AI.
This strategy, however, might not work in Musk’s favor. While he has built groundbreaking companies like Tesla and SpaceX, his recent actions are causing people to question his true motivations. “He’s brilliant. He creates world-changing companies. But his personal agenda is now under scrutiny,” Freund added.
For further updates on this developing story, visit New York Mirror.
