Musk’s Attempted Takeover of OpenAI
Elon Musk tried to acquire OpenAI earlier this year in a deal valued at around $97.4 billion, according to newly disclosed court filings. During the process, Musk approached Meta chief executive Mark Zuckerberg for financial backing, but the talks did not move forward.
OpenAI revealed the details in a petition submitted to the court, noting that Musk had discussed bringing Zuckerberg on board as a funding partner. However, neither Zuckerberg nor Meta signed a letter of intent or expressed a willingness to participate.
Board Rejected Musk’s Offer
OpenAI’s board of directors reportedly turned down Musk’s takeover offer in February. The company has now asked the court to compel Meta to disclose any communication it may have had with Musk. OpenAI argues that such disclosures could demonstrate Musk’s intentions to turn the organisation into a profit-driven venture.
Meta, however, dismissed the request as irrelevant. The company stated it had no involvement in Musk’s bid and therefore holds no documentation that could aid the case.
Dispute Over OpenAI’s Mission
The case highlights a growing rift between Musk and the company he helped establish. Musk co-founded OpenAI with Sam Altman and other partners nearly a decade ago, originally positioning it as a non-profit research group committed to developing artificial intelligence safely and transparently for the benefit of humanity.
Musk has since accused OpenAI’s current leadership of abandoning those principles. In particular, he has criticised its deepening partnership with Microsoft, which has invested billions of dollars into the company and integrated its models into products like Microsoft 365 and Azure. Musk argues that this collaboration has transformed OpenAI into a profit-seeking enterprise, undermining its founding mission.
Musk’s Legal Fight and xAI
In response to what he views as OpenAI’s deviation from its original goals, Musk launched a legal battle against the organisation. He claims OpenAI has shifted toward a “closed” and commercialised model that prioritises revenue over open research.
At the same time, Musk has created his own artificial intelligence venture, xAI. Founded in 2023, xAI aims to develop alternatives to OpenAI’s products, including conversational models designed to compete with ChatGPT. The company is closely linked to Musk’s other businesses, such as Tesla and X (formerly Twitter), and seeks to build AI systems that Musk says are more transparent and aligned with human values.
A Broader Battle in the AI Industry
The dispute comes amid intensifying competition in the global AI sector. Major tech companies—including Microsoft, Google, Amazon, and Meta—are investing heavily to dominate the next generation of artificial intelligence tools.
OpenAI, with its popular chatbot ChatGPT and image generator DALL·E, has emerged as a frontrunner. Its close ties with Microsoft have given it a powerful position in the market, though they have also sparked criticism about concentration of power and limited access to advanced AI technology.
Meanwhile, Musk’s xAI is still in its early stages, but he has positioned it as a challenger to what he calls the “closed” ecosystems of OpenAI and other competitors. Whether xAI can gain significant ground remains uncertain, especially given the resources and market lead of established players.
What Comes Next
The court case between Musk and OpenAI is expected to bring further scrutiny to the company’s governance and commercial partnerships. Analysts note that the legal battle also underscores broader tensions over how artificial intelligence should be developed, controlled, and monetised.
While Musk’s outreach to Zuckerberg did not succeed, the revelation highlights the scale of his ambition to regain influence over OpenAI. It also suggests that leading figures in Silicon Valley are cautious about joining forces in an industry already under close regulatory and public scrutiny.
For now, OpenAI continues to expand under Altman’s leadership, while Musk pursues his rival vision through xAI. The outcome of the legal fight could shape not only the future of OpenAI but also the direction of AI development worldwide.
