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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Yes, Elon Musk really made an offer—but not recently. On February 10, 2025, a Musk-led consortium offered approximately $97.4 billion, reported in the detailed proposal as $97.375 billion in cash, for OpenAI’s nonprofit entity or the assets and control rights associated with it. OpenAI’s board unanimously rejected the offer four days later, and Musk did not buy OpenAI.
The offer was real, but the headline needs context
The proposal was an unsolicited bid led by Musk, his artificial-intelligence company xAI and investment firms associated with his ventures. Contemporary reports described an all-cash offer. The widely quoted amount was approximately $97.4 billion; the detailed offer letter was reported as specifying $97.375 billion. (AP; Axios; TechCrunch)
It was not a completed acquisition, a tender offer accepted by shareholders or proof that Musk personally had committed $97.4 billion from his own balance sheet. The bid came from a consortium, and public reporting did not establish a complete financing package at announcement.
What Musk was actually trying to buy
“Buy OpenAI” is understandable shorthand, but it collapses an unusual corporate structure. OpenAI has a nonprofit parent that controls a for-profit operating business where its commercial products and activities are conducted. The proposal was directed at the nonprofit entity, its controlling interest or related assets—not a simple purchase of every OpenAI company and contract at a single conventional equity price. (The Washington Post; TechCrunch)
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That distinction mattered because OpenAI was considering a restructuring that would give the operating business a more conventional for-profit form. Control of the nonprofit parent could influence whether that conversion happened and how OpenAI’s mission and assets were governed. The legal mechanics were therefore central to the bid, rather than a technical footnote.
Why Musk made the bid
Musk’s stated rationale
Musk helped establish OpenAI in 2015 and left the organization in 2019. He later sued OpenAI and CEO Sam Altman, arguing that the company had moved away from its founding public-benefit and safety-oriented purpose. In the offer’s stated rationale, Musk presented the bid as an effort to preserve the nonprofit mission and prevent OpenAI’s assets from being shifted into a conventional for-profit structure. (AP)
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OpenAI’s interpretation
OpenAI and Altman characterized the proposal as a competitive and legal tactic aimed at disrupting OpenAI’s restructuring while Musk pursued litigation against the company. That is an attributed allegation, not an independently established fact. Musk was also running xAI, a direct competitor, which made the conflict both corporate and strategic. (Investing.com; OpenAI court filing)
Who backed the $97.4 billion proposal?
The reported consortium included:
- Elon Musk
- xAI
- Vy Capital
- Valor Equity Partners
- 8VC and other investors or firms associated with Musk’s ventures
News accounts differed on the full list of participants. The safest description is a Musk-led consortium with xAI and financial backers, not a personal offer funded solely by Musk. (The Washington Post; Yahoo Finance)
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How Altman and OpenAI responded
Altman’s immediate public reply
Altman rejected the approach publicly on February 10. In a sarcastic post on Musk’s social-media platform, he said “no thank you” and counteroffered to buy Twitter for a small fraction of Musk’s proposal. The exchange illustrated the hostile tone, but it was not the formal corporate decision.
The board’s unanimous rejection
OpenAI’s board unanimously rejected the offer on February 14, 2025. Chairman Bret Taylor said OpenAI was not for sale and that the proposal sought to disrupt a competitor. OpenAI’s position was that any restructuring should retain and strengthen the nonprofit’s mission rather than eliminate its control. (Reuters, republished by Inc.; Axios; AP)
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Why the withdrawal condition mattered
In a February 12–13 court filing, Musk’s lawyers said the consortium would withdraw its offer if OpenAI stopped converting toward a for-profit structure and preserved the charity’s mission. That condition tied the bid directly to the restructuring dispute. It also allowed OpenAI to argue that the proposal was not an unconditional attempt to acquire the operating business. (Reuters, via Investing.com; Axios; TechCrunch)
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Was $97.4 billion a high or low price?
At the time, investors had reportedly valued OpenAI at about $157 billion in its financing context. On the surface, $97.4 billion was lower. The comparison is not like-for-like, however: the $157 billion figure referred to an investor valuation for OpenAI’s broader corporate context, while Musk’s proposal targeted a nonprofit entity or its controlling assets. The figures therefore measured different interests and rights, even though the bid created an important reference point for the value of nonprofit control. (The Washington Post)
Was the offer formally delivered?
There was a procedural dispute over delivery. Reuters reported that OpenAI’s board initially had not received the offer directly, while Musk’s lawyer said it had been sent to OpenAI’s outside counsel. Musk’s legal team later described it in a court filing. The disagreement did not make the proposal fictitious: it was publicly documented and the board formally rejected it, although the parties disputed its legal and commercial significance. (Reuters, via Investing.com)
What happened afterward?
The bid failed. OpenAI was not sold to Musk, xAI or the consortium, and the company said it was not for sale. Litigation and restructuring negotiations continued. Later reporting said OpenAI revised its restructuring plan so the nonprofit would retain control, but that subsequent development should not be confused with Musk’s offer succeeding or causing the change. (Reuters, via Investing.com)
Quick Recap
Key facts at a glance
| Question | Answer |
|---|---|
| When was the offer made? | February 10, 2025 |
| How much? | Approximately $97.4 billion; the detailed proposal was reported as $97.375 billion |
| Who made it? | A consortium led by Elon Musk, including xAI and financial backers |
| What was targeted? | OpenAI’s nonprofit entity, controlling interest or associated assets |
| Payment terms | Reportedly 100% cash in the detailed offer letter |
| What did the board do? | Rejected the offer unanimously on February 14, 2025 |
| Did Musk acquire OpenAI? | No |
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