In a stunning development highlighting the escalating power struggle within the global artificial intelligence (AI) industry, Elon Musk, the CEO of xAI, Tesla, and SpaceX, sought to recruit Mark Zuckerberg, CEO of Meta Platforms, to help bankroll an audacious $97.4 billion bid to acquire OpenAI, the innovator behind ChatGPT and other leading AI technologies. This revelation was made public in an OpenAI court filing submitted earlier this week, further intensifying the ongoing legal and competitive battles shaping the future of AI.

Inside Musk’s Bid for OpenAI

Elon Musk’s links to OpenAI are deep and complex. As one of the organization’s co-founders alongside Sam Altman in 2015, Musk parted ways in 2018, citing differences over the company’s direction and ethical concerns. Since then, he has been a vocal critic of OpenAI’s commercial transformation, notably after it shifted from its original nonprofit mission to a capped-profit model (NY Times, 2023).

According to court documents, Musk identified Zuckerberg as a potential financial ally for the takeover of OpenAI, which is now among the world’s most valuable AI companies. However, Meta and Zuckerberg declined to participate, with no indication of collaboration or intent, according to the filing. OpenAI’s board promptly rejected Musk’s proposal in February 2025.

The bid—still unsolicited—would have been one of the largest tech acquisitions in history, mirroring the fierce contest for AI leadership in Silicon Valley and beyond.

Legal Battles and Allegations

The attempted acquisition comes as Musk is already locked in two lawsuits against OpenAI, accusing it and CEO Sam Altman of abandoning the company’s founding ethos of openness and public benefit. He has previously accused OpenAI of “betraying its charitable mission” by partnering closely with Microsoft, which invested over $13 billion into OpenAI by early 2025 (Bloomberg, 2024).

Musk’s legal actions have aimed to halt OpenAI’s restructuring toward a traditional for-profit model—a shift many say was necessary to sustain and advance its world-leading research in generative AI. The court filings now suggest that, while Musk was publicly critical of OpenAI’s alignment with Big Tech, he was also pursuing his own bold plans to take over the company, reaching out even to key competitors like Meta for backing.

Meta’s Denial and Industry Implications

Meta responded to the court’s inquiry by distancing itself from the takeover attempt. In its official statement, Meta said, “Meta’s documents can hold no evidence of ‘coordination’ with Musk, or of Meta’s purported attempt to purchase OpenAI, or of any other relevant information when Meta did not join Musk’s bid.” Meta further asserted that it had neither signed a letter of intent nor joined Musk’s overture.

This episode casts a spotlight on the high-stakes, often secretive maneuvers of technology giants seeking dominance in the rapidly growing AI sector. With global AI investment projected to surpass $200 billion by 2030 (McKinsey, 2023), the stakes could not be higher. Musk’s choice to approach his primary rival underscores both the scale of ambition and the unpredictability that define the current AI race.

Rivalries and the Shape of AI’s Future

The rivalry between Musk and Zuckerberg is no secret. Meta’s generative AI efforts have accelerated sharply in the past year—Zuckerberg has aggressively recruited top AI talent, sometimes offering high-profile hires compensation packages exceeding $100 million (Business Standard, 2025). Meta’s “Llama” large language models are quickly gaining traction, challenging OpenAI’s GPT-4 and Google’s Gemini series for both enterprise and consumer applications.

Meanwhile, Musk’s AI startup, xAI, debuted “Grok”—an AI assistant that taps into the X (formerly Twitter) platform for real-time insights, presenting itself as a
more open and unfiltered alternative to OpenAI’s ChatGPT. The AI arms race has since expanded to other entities, with Amazon, Anthropic, and Google all investing heavily in their own frontier models.

Courtroom Drama and What Lies Ahead

The legal battle surrounding OpenAI’s governance and approach continues to rumble on. OpenAI, for its part, has asked the court to compel Meta to provide any documentation concerning communications with Musk or his representatives, aiming to clarify the extent of other outside influences during the takeover bid.

For his part, Musk’s legal claims against OpenAI have been cast in a more controversial light, with the presiding judge noting, “efforts by Musk to incorporate OpenAI into Tesla or to convert it into a for-profit company are relevant because they may be inconsistent” with his public criticism of OpenAI’s own profit-driven partnerships. The paradox of Musk’s simultaneous legal challenges and takeover maneuvers presents a complex picture of high-level hypocrisy and strategic brinkmanship.

The Stakes for the Global AI Market

The attempted takeover and its fallout have rippled throughout the AI and tech investing ecosystem. OpenAI, with a reported valuation approaching $97 billion after its latest funding round, remains a pivotal force—powering Microsoft’s Copilot, ChatGPT, and major enterprise deployments globally. Its continued independence or potential absorption by a major tech conglomerate would dramatically shift the power dynamics in AI, potentially impacting innovation trajectories, data governance, and competition worldwide.

As AI capabilities expand with the release of ever more powerful models—from ChatGPT-5 to Google’s Gemini Ultra—the governance, ownership, and stewardship of these foundational technologies remain a central question for regulators, investors, and the public alike.

Looking Forward

While Musk’s stunning bid for OpenAI has been firmly rebuffed, the episode highlights just how fiercely contested the AI leadership race has become. As companies like Meta, Microsoft, and xAI battle for market share and technological supremacy, collaboration—even between rivals—cannot be discounted. The ongoing court battles, investment flows, and operational partnerships are likely to paint a continually shifting map of the AI sector long into the future.

Observers and stakeholders will be watching closely as judges, investors, and industry leaders determine the fate not only of OpenAI, but of the principles that will govern the next era of advanced artificial intelligence.