In a bold and controversial move, Elon Musk is leading a group of investors offering $97.4 billion to purchase OpenAI, the company behind ChatGPT. This high-stakes offer could dramatically shift the landscape of artificial intelligence (AI), a sector already in a rapid state of growth and competition.

The Feud Behind the Bid

Elon Musk, who co-founded OpenAI in 2015, has been in a long-standing feud with the company’s CEO, Sam Altman. Their dispute stems from OpenAI’s shift toward becoming a for-profit entity, which Elon Musk argues goes against its original mission. When OpenAI was founded, it was intended to focus on the safe and responsible development of artificial general intelligence (AGI) to benefit humanity. But as the company grew, Elon Musk claims it deviated from this goal, aiming for profits over safety and openness.

The Company’s Structure and Success

OpenAI is organized as a nonprofit organization, which oversees OpenAI LP, a for-profit company responsible for the commercial aspects of the business. Despite its nonprofit status, OpenAI LP has been highly successful, achieving a valuation close to $100 billion in just a few years, largely under Altman’s leadership. Musk’s bid for the company comes at a time when OpenAI is considered one of the most influential players in the AI space.

Musk’s Vision for OpenAI

Elon Musk’s proposal could give him majority control of OpenAI, potentially leading to a drastic change in the company’s direction. His group of investors has stated that if OpenAI intends to fully embrace a for-profit model, the nonprofit arm should be compensated fairly for the control it would lose over “the most transformative technology of our time.”

According to Marc Toberoff, an attorney representing Musk’s investors, the goal is to steer OpenAI back to its open-source and safety-first roots. Musk’s vision involves bringing OpenAI back to its original mission, focusing on AI that is open, transparent, and not driven solely by profit.

The AI Arms Race

The rapid growth and innovation at OpenAI have raised concerns about the pace of AI development. In a world where AI tools are increasingly powerful, companies face pressure to release new products quickly. OpenAI’s shift toward a for-profit model, driven by heavy investors like Microsoft, has led to rapid marketization of products like ChatGPT, sometimes with risks that weren’t fully addressed.

This “move fast and break things” mentality, while successful in many tech industries, has sparked concerns over the safety and potential harms of advanced AI. In late 2023, OpenAI’s board made headlines by firing Altman, only to quickly reinstate him, amid debates over the company’s rapid growth and disregard for safety measures. Critics argue that OpenAI’s drive for profits has sometimes overshadowed the caution needed when dealing with powerful AI tools.

Elon Musk’s Lawsuits and the OpenAI Fallout

The tension between Musk and OpenAI has not only played out publicly but also legally. Musk first sued the company in June 2024, claiming that OpenAI was racing to develop AGI to maximize profits without considering the long-term consequences. Musk later filed a second lawsuit accusing the company of racketeering and unfair business practices.

Musk’s legal battles with OpenAI reflect his frustration with the direction the company has taken since he left in 2018. At that time, Musk attempted to acquire the company through Tesla but was unable to convince the other co-founders. Since then, Musk has repeatedly criticized OpenAI for prioritizing profits over its initial mission to ensure AI benefits humanity.

The Future of OpenAI

With Elon Musk’s latest $97.4 billion offer, the future of OpenAI—and artificial intelligence itself—may soon be in his hands. Whether Musk’s plan will be accepted or whether OpenAI can remain independent as it pushes the boundaries of AI technology remains to be seen. For now, the tech world watches closely as this billion-dollar battle unfolds.