In a surprising turn in the AI industry, Elon Musk, the founder and CEO of X and xAI, reportedly attempted to outmaneuver his competition by proposing a joint bid to acquire OpenAI, the leading AI research company. According to a report, Musk approached Meta CEO Mark Zuckerberg to join a massive $97.4 billion bid to buy OpenAI, a move that could have potentially reshaped the AI race.
Court filings in the ongoing legal dispute between OpenAI and Musk have shed light on this potential collaboration. OpenAI revealed in a statement that Musk, through xAI, tried to form a consortium of investors to finance a takeover and reached out to Zuckerberg with a letter of intent. The communication explored “potential financing arrangements or investments.” However, neither Zuckerberg nor Meta signed the proposed agreement, leaving Musk’s ambitious plan unrealized.
Elon Musk’s Proposal and Motives
In the early months of 2025, Elon Musk floated the idea of acquiring OpenAI. Musk, who had been critical of OpenAI’s approach and its CEO Sam Altman, was concerned about the company’s shift toward a for-profit model. Once close friends, Musk and Altman have grown increasingly adversarial as OpenAI emerged as a leader in generative AI, attracting billions in funding from Microsoft. Musk, who founded xAI in 2023 to compete directly with OpenAI, viewed the takeover as a strategic move to eliminate competition and position xAI at the forefront of the AI industry.
BREAKING: OpenAI says that Elon Musk met with Meta CEO Mark Zuckerberg to discuss a $97 billion takeover bid of the ChatGPT-maker — TechCrunch
— Insider Paper (@TheInsiderPaper) August 22, 2025
Musk’s actions have included legal challenges against OpenAI, alleging breach of contract and opposing the company’s transition to a for-profit entity. In response, OpenAI has described Musk’s efforts as a “sham bid” that harmed its business, accusing him of harassment via litigation, social media attacks, and press statements.
Meta’s Role in the AI Battle
OpenAI’s filings also highlighted Meta’s aggressive expansion in AI. The company has reportedly invested heavily in its AI capabilities, offering pay packages exceeding $100 million to attract top AI researchers and attempting to poach talent from OpenAI. While the court documents suggest that Meta could have played a critical role in Musk’s bid, the social media giant did not sign the letter of intent, effectively declining to participate in the consortium.
As the legal battle continues, the tech world watches closely. The potential Musk-Zuckerberg collaboration could have changed the dynamics of the AI race, but for now, OpenAI remains independent, continuing to lead in generative AI innovation.
Elon Musk’s bold attempt to join forces with Mark Zuckerberg to buy OpenAI underscores the high stakes in the rapidly evolving AI industry. While the bid ultimately did not materialize, the episode highlights the fierce competition and strategic maneuvering among AI giants, shaping the future of artificial intelligence.
SEE ALSO: DeepSeek Launches V3.1 AI Model Optimised For Chinese Chips
Great Job Omair Pall & the Team @ Mashable India tech Source link for sharing this story.
