OpenAI's Valuation Under Scrutiny as Elon Musk's $97.4 Billion Bid and Lawsuit Create Market Uncertainty

The valuation and strategic direction of artificial intelligence leader OpenAI have come under intense scrutiny following a significant bid by a consortium led by Elon Musk and ongoing legal challenges. A recent social media post by user CBduck.base.eth 🌱 speculated, "Did Elon just erase xxx B market cap from @OpenAI ?", highlighting the perceived impact of Musk's actions on the company's market standing.

In February 2025, a group spearheaded by Elon Musk offered $97.4 billion to acquire the nonprofit entity that governs OpenAI. This unsolicited bid intensified existing tensions between Musk and OpenAI CEO Sam Altman, particularly concerning the company's controversial transition from a nonprofit to a capped-profit structure. Musk has also filed a lawsuit against OpenAI, alleging that its shift to a for-profit model violates its original mission to develop AI for the public good.

OpenAI has firmly rejected Musk's acquisition attempt, with CEO Sam Altman publicly dismissing the offer. The company, which was valued at $157 billion in its last funding round and was reportedly in talks for a $300 billion valuation, maintains that its for-profit transition is essential to secure the substantial capital required for advanced AI development. This financial strategy aims to fund the immense computational resources needed to pursue artificial general intelligence (AGI).

The combined effect of Musk's bid and the ongoing legal battle has introduced considerable uncertainty into OpenAI's financial landscape. Industry observers suggest these actions are designed to disrupt OpenAI's fundraising efforts and create investor apprehension. Musk himself has directly questioned the legitimacy of OpenAI's value, stating, "Your ‘equity’ is fake," in response to the company's warnings about unauthorized "OpenAI tokens."

Musk, a co-founder of OpenAI who departed in 2018, later established his own AI venture, xAI, which recently secured $6 billion in funding at a $40 billion valuation. His persistent challenges against OpenAI are widely seen as a continuation of a philosophical clash over the future of AI development, pitting his vision of open-source, safety-focused AI against OpenAI's more commercial and rapid innovation approach. The outcome of these disputes is poised to significantly influence OpenAI's future trajectory and the broader competitive dynamics within the rapidly evolving AI industry.