Musk says he will agree to take back OpenAI takeover bid, if Sam Altman stops from going for-profit

Elon Musk has thrown a curveball in his ongoing feud with OpenAI, making an unsolicited $97.4 billion bid for the nonprofit that controls the company. But there’s a condition—Musk says he’ll withdraw the offer if OpenAI scraps its plan to transition into a for-profit business.

This latest twist follows a long history of disagreements between Musk and OpenAI CEO Sam Altman, who co-founded the AI research lab together before their relationship soured. With OpenAI moving toward a public benefit corporation structure, Musk is trying to throw a wrench in the works, insisting that the company stick to its original nonprofit mission. However, Altman has already rejected the bid outright.

Musk’s offer and its conditions

Musk’s legal team confirmed the details in a court filing, stating that if OpenAI’s board commits to halting its shift to a for-profit model, Musk will back off from the takeover attempt. However, his demand seems more symbolic than practical, given that Altman has already publicly dismissed the offer.

When OpenAI was first founded, the company vowed to keep its research independent from financial pressures. However, as AI development became more expensive, it introduced a “capped-profit” model, allowing it to raise funds while still aligning with its broader mission. The proposed restructuring would take this a step further, turning OpenAI’s for-profit arm into a Delaware-based public benefit corporation (PBC), similar to competitors Anthropic and Inflection AI.

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Musk, who left OpenAI after his failed attempt to take over the company in 2018, has long been critical of its financial partnerships, particularly its close ties to Microsoft. He has even filed a lawsuit against Altman and OpenAI, arguing that the company has strayed from its original mission.

A war of words

Musk’s offer wasn’t just rejected—it was mocked. Altman took to X (formerly Twitter) to sarcastically respond, saying: “No thank you, but we will buy Twitter for $9.74 billion if you want.” Musk then fired back, calling Altman a “swindler” and than “Scam Altman."  

The exchange didn’t stop there. Altman later said he believes Musk operates “from a position of insecurity”, adding, “I feel for the guy. I don’t think he’s a happy person."

While their public jabs entertained the internet, the deeper issue remains—who will control the future of artificial intelligence? Musk’s own AI company, xAI, has been gaining momentum, but OpenAI continues to dominate the space. The latest twist in the rivalry came when Donald Trump’s $500 billion “Stargate” AI infrastructure project chose OpenAI as a key partner, leaving Musk’s xAI out of the deal. Trump even commented that Musk “hates one of the people in the deal."

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What will Musk do next

Despite Altman’s immediate rejection, Musk’s bid could still complicate things for OpenAI’s board. The Wall Street Journal has reported that the offer might push OpenAI’s directors to reassess the nonprofit’s value, particularly as it transitions to a for-profit model. Even if Musk has no real chance of buying OpenAI, his bid could force conversations about the company’s future and financial strategy.

For now, Altman seems firmly in control, and OpenAI is moving ahead with its PBC restructuring. But with Musk’s legal battle still ongoing, this feud is far from over.