Elon Musk and a group of investors have launched a staggering US$97.4 billion bid to acquire OpenAI, marking what appears to be a hostile takeover attempt. The consortium, led by Musk, announced the offer on February 10, stating they are “prepared to consider matching or exceeding higher bids.” This move comes as Musk continues his efforts to counter OpenAI CEO Sam Altman’s restructuring plans.
In a swift response on X, Altman dismissed the offer with a sarcastic retort: “No thank you, but we will buy Twitter for US$9.74 billion if you want.” His reaction underscores the growing tension between OpenAI’s leadership and Musk, one of the organisation’s founders, when it launched as a nonprofit AI research entity.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
The key investors behind Musk’s bid
The investor group backing Musk includes well-known firms with strong connections to his business empire. Among them are Baron Capital Group Inc., Valor Management LLC, Atreides Management LP, Vy Fund III L.P., Emmanuel Capital Management LLC, and Eight Partners VC LLC. While Emmanuel Capital Management remains relatively low-profile, the other firms are well-established names in the investment world.
Baron Capital Group, founded by Ron Baron and managed alongside his son Michael Baron, holds significant stakes in Tesla and SpaceX through its Baron Partners Fund. Atreides Management, a Boston-based hedge fund led by Gavin Baker, has invested in both Tesla and SpaceX. Baker, a longtime Musk supporter, played a key role in Fidelity’s early investment in SpaceX and has publicly backed Musk’s multi-billion-dollar Tesla compensation package. Valor Management, founded by Antonio Gracias, was an early SpaceX investor and a former Tesla board member. Gracias also invested in SolarCity, a company Musk later brought under Tesla’s umbrella. Vy Capital, established by Alexander Tamas, has invested in SpaceX, Neuralink, and The Boring Company, all key ventures in Musk’s expanding empire. Eight Partners VC, better known as 8VC, is run by Joe Lonsdale, a vocal supporter of Musk. Lonsdale has appeared on CNBC, calling himself “a huge fan” of Musk’s ventures, including his well-known backing of Dogecoin.
JOE LONSDALE: DOGE AND THE NEW ADMIN WILL DRIVE 10X EFFICIENCY GAINS
— Mario Nawfal (@MarioNawfal) February 8, 2025
“I’m a huge fan of DOGE.
I have a lot of friends involved in DOGE and have been doing my best to help them.
There’s so much waste in government.
There’s so much to cut.
Companies like Palantir and… pic.twitter.com/LwXQEdykFw
Is it a strategic move or a calculated troll?
Despite the eye-watering sum offered, it remains unclear whether Musk’s takeover bid is a serious effort or a strategic ploy. Speculation is growing that this move is aimed at complicating Altman’s plans to transition OpenAI away from its nonprofit roots. Some analysts believe Musk’s bid is intended to drive up the price Altman’s team would pay to restructure OpenAI and maintain control.
My understanding is that @elonmusk is not trying to buy the OpenAI nonprofit, per se, but rather the underlying for-profit assets that @sama must buy in order to reorg the company.
— Dan Primack (@danprimack) February 10, 2025
So it’s partially a troll, and partially setting a price that may cause Sam to pay more than he…
Musk has long been vocal about his disapproval of OpenAI’s shift towards commercialisation. Having co-founded the organisation in 2015 to ensure AI benefits humanity, he has since distanced himself from its leadership and has been critical of its direction. His latest bid suggests he is far from done with challenging OpenAI’s future.
