Elon Musk's fight over OpenAI just took another twist. His group of investors is willing to walk away from their $97.4 billion bid—if OpenAI scraps its plan to go fully for-profit. Musk, who co-founded OpenAI but left in 2018, has been locked in a heated battle with CEO Sam Altman over the company's direction. Altman dismissed the bid as “ridiculous,” and OpenAI's board has made it clear—the nonprofit that controls the AI giant is not for sale. Meanwhile, SoftBank Group (SFTBY, Financial) is reportedly looking to pump up to $40 billion into OpenAI, further cementing its dominance in the AI race. Investors are watching closely, as the outcome could set a precedent for how AI companies balance massive capital needs with their original missions.
The legal and strategic war between Musk and OpenAI is exposing deep cracks in the AI world. Musk argues that OpenAI's nonprofit structure is being erased in favor of profit—a direct violation of its original mission. On the other hand, the company has accused Musk of hypocrisy, pointing out that while he's suing OpenAI for allegedly abandoning its nonprofit roots, he's also trying to buy it. Musk's own AI startup, xAI, adds another layer to the feud, raising questions about whether this is truly about OpenAI's mission—or about Musk wanting control of its future. Either way, OpenAI is hurtling toward a valuation north of $100 billion, with investors wondering if this fight will create instability or drive further growth.
For investors, the stakes are massive. If Musk's legal challenge gains traction, it could disrupt OpenAI's restructuring and impact AI industry governance. If his bid is rejected, OpenAI moves forward—but with potential legal battles hanging over its future. SoftBank's interest signals strong confidence in OpenAI's trajectory, but uncertainty lingers. One thing is clear: as AI companies scale, the tension between mission-driven innovation and profit-hungry investors is only getting started.
