Elon Musk $97.4 Billion Bid for OpenAI Sparks AI Power Struggle

The artificial intelligence (AI) landscape was thrown into turmoil on Monday as a consortium led by Elon Musk made a staggering $97.4 billion bid to acquire OpenAI. The dramatic move adds fuel to the ongoing rivalry between Musk and OpenAI CEO Sam Altman, intensifying their legal battle over the company’s mission and ownership.

Musk vs. OpenAI: The Battle for AI’s Future

Musk’s attorney, Marc Toberoff, confirmed that the billionaire has officially submitted a bid for OpenAI’s assets. The offer marks a major twist in Musk’s feud with OpenAI, which escalated last August when he sued the company for allegedly abandoning its nonprofit mission in favor of profit-driven ambitions.

In a direct jab at OpenAI’s current leadership, Musk stated:

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.”

However, Sam Altman quickly dismissed the offer, stating that OpenAI is not for sale. In a sharp retort on X (formerly Twitter), Altman mocked Musk’s bid, responding:

“No thank you, but we will buy Twitter for $9.74 billion if you want.”

Analysts Weigh In: Skepticism Over Musk’s Intentions

Market analysts have raised eyebrows over Musk’s sudden interest in OpenAI, particularly given his investment in xAI, a competing AI venture. One analyst noted:

“I think it’s fair to be pretty suspicious of this considering that he has a competitor himself… which is structured as a for-profit company, so I think there’s more than meets the eye here.”

Altman further criticized Musk’s move, stating that the Tesla CEO is simply trying to buy out the competition rather than outperforming OpenAI in the market.

Hedge Funds Bet Big on AI Stocks Amid the Power Struggle

As Musk and Altman battle for AI dominance, hedge funds continue to pile into AI stocks, seeing massive growth potential in the sector. Research has shown that tracking hedge fund moves can outperform the market, with a stock selection strategy that has returned 275% since 2014—beating its benchmark by 150 percentage points.

For investors looking to navigate the high-stakes AI revolution, monitoring hedge fund favorites may be the key to capitalizing on the next big AI breakthrough.