Elon Musk has recently made a $97.4 billion offer to take control of OpenAI's nonprofit arm, as per a report by The Wall Street Journal. According to the report,  the bid was placed on Monday, just as OpenAI pushes to become a for-profit business—a move Musk says goes against its original mission of developing AI safely and openly.

Musk's bid is backed by his AI company xAI, investment firms Valor Equity Partners and 8VC, and Hollywood executive Ari Emanuel. The group sent the offer directly to OpenAI's board, promising to match or outbid any other offers, as per the report.

Musk, who co-founded OpenAI with CEO Sam Altman in 2015 but left in 2019, said in a statement through his lawyer, Marc Toberoff, that OpenAI should return to being an open-source and safety-focused organisation.

Altman rejected the offer with a post on X (formerly Twitter), saying, "No thank you, but we will buy Twitter for $9.74 billion if you want."

OpenAI, which developed ChatGPT, is shifting to a for-profit model to raise money for AI development. This includes a $40 billion funding round and a $500 billion infrastructure project linked to former President Donald Trump. Musk, who has ties to Trump, called the plan "reckless", states the report.

Musk sued OpenAI and Altman in August 2023, accusing them of putting profits before the company's original promise to benefit humanity. In November, he asked a court to block OpenAI from becoming a for-profit business, arguing it breaks the company's original nonprofit agreement. He claims he was originally asked in 2015 to fund a nonprofit focused on ethical AI but now believes Altman is prioritising money over safety.

Musk's offer complicates OpenAI's ongoing talks with Microsoft and other investors. His move also reflects his growing influence as a Trump administration advisor, where he leads efforts to improve government efficiency.