Musk's Camp Once Offered $97.4 Billion to Acquire OpenAI's Non-Profit Parent
In February 2025, an entity associated with Musk proposed a $97.4 billion offer aimed at acquiring control of the non-profit organization that governs OpenAI, to influence its restructuring direction.
At that time, OpenAI planned to transition its profit-making business into a Public Benefit Corporation (PBC) with a social mission, and if the non-profit parent retained control, it could dominate overall governance. The core of the offer was to provide a market pricing reference for the non-profit assets.
OpenAI rejected the offer, characterizing it as competitive interference, and subsequently adjusted its restructuring plan, emphasizing that the non-profit organization would continue to control OpenAI Group PBC and hold equity in the profit-making entity valued at approximately $130 billion.
On the fourth day of the trial, while questioning Jared Birchall again, OpenAI's lawyer challenged the authenticity of the offer, suggesting it was a litigation weapon rather than a serious acquisition.
Source: Public Information
ABAB AI Insight
Musk has continued to exert pressure through litigation and public means since his exit from the OpenAI board in 2023. The $97.4 billion offer in February 2025 continues his path from internal founder to external challenger, having previously accused OpenAI of violating founding agreements. This move directly targets the control of the non-profit parent organization, attempting to prevent the low-priced transfer of assets to the PBC.
In terms of capital strategy, Musk's camp uses the high offer to create an external market reference, forcing OpenAI to justify the valuation of non-profit assets during restructuring. OpenAI counters by reinforcing its non-profit holding of the $130 billion PBC equity, with both sides characterizing the offer as a valuation tool versus a litigation weapon, shifting resources from direct acquisition to governance structure and legal battles.
The high-offer strategy is common in control disputes among tech companies, or in early governance controversies within OpenAI. The current litigation is at a critical witness stage, focusing on the true valuation of non-profit assets and the legality of the restructuring.
Essentially, this represents a transfer of pricing power: by placing OpenAI's non-profit assets under public market pricing pressure through a massive external offer, the mechanism forces the restructuring plan to accept external references and regulatory scrutiny, structurally shifting governance and asset control from OpenAI's internal team to competitors, courts, and market mechanisms, while also creating strategic space for rivals like xAI.