Elon Musk's Consortium Offers $97.4 Billion to Acquire OpenAI, Fending Off For-Profit Transition
Elon Musk is taking bold steps to reclaim control of OpenAI by leading a consortium that has made a staggering $97.4 billion bid to acquire the nonprofit organization overseeing the AI firm. The bid is aimed at thwarting OpenAI's intended shift towards becoming a for-profit entity, a move that has stirred up widespread discussion and triggered a notable uptick in the values of AI-related cryptocurrencies and projects.
Having co-founded OpenAI in 2015, Musk parted ways with the organization before it gained significant attention. However, his discontent with the company's trajectory, particularly its pivot towards a for-profit model, has been a longstanding issue. Musk firmly believes that OpenAI has strayed from its original mission of advancing open-source AI development.
According to a report by The Information, Musk emphasized, "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."
Leading the charge, Musk's consortium, which includes his AI startup xAI, Baron Capital Group, Emanuel Capital, and other investors, is pushing to acquire OpenAI. If successful, a potential merger between xAI and OpenAI could significantly influence the landscape of AI competition.
However, in a cheeky retort to Musk's offer, OpenAI CEO Sam Altman responded on X, saying, "No thank you, but we will buy Twitter for $9.74 billion if you want." This playful reply underscores the strained relationship between Altman and Musk.
Elon Musk's move has not only stirred activity within the crypto space but has also sparked a surge in AI-related cryptocurrencies, indicating investor confidence in the growing significance of artificial intelligence. The market capitalization of AI coins has surged by 11% to reach $30 billion, while AI-powered agents have experienced an even more substantial increase of nearly 18%, pushing their combined valuation above $7.8 billion.
In response to the evolving landscape, crypto trader and developer Hodler highlighted the renewed interest in the AI narrative, stating, "AI narrative should come back. In 2025-2026, we will talk a lot about the competition between AI companies and new techs."
Among the tokens within the AI sector witnessing notable growth is Bittensor (TAO), particularly following the dTAO upgrade. The Bittensor Ecosystem's value has surged by 17% to $3.6 billion according to CoinGecko data. An influential analyst on X has indicated that TAO is emerging as a significant player in the AI coin space.
As market dynamics shift, there is a clear move away from meme coins and speculative assets towards altcoins demonstrating practical real-world applications. This trend further underscores the importance of AI-related cryptocurrencies and blockchain-driven AI solutions in a maturing market focused on long-term value over short-term hype.