Musk's Hostile Bid Against OpenAI Backfires, Exposing xAI's Limitations

Elon Musk’s Hostile Bid to Cripple OpenAI is a Strategic Attack to Boost xAI

Elon Musk has launched a hostile and strategic attack against OpenAI—the company he co-founded, later abandoned, and now wants to destroy. His latest move? A $97.4 billion bid to take over OpenAI’s nonprofit arm. But it was never meant to succeed.

Instead, Musk’s true goal was to destabilize OpenAI and create a public narrative that would damage the company’s future. Now, after CEO Sam Altman swiftly rejected the bid, Musk is trying a new tactic:

💡 He now says he will withdraw his bid—but only if OpenAI remains a nonprofit.

This isn’t about principles or AI safety. It’s a calculated effort to weaken OpenAI and eliminate its competitive edge against xAI, his own AI company.

Key Takeaways

Musk’s Bid Was Always Hostile – He never had a real shot at acquiring OpenAI. The goal was to disrupt OpenAI’s transformation into a for-profit powerhouse that could dominate AI.
Sam Altman Saw Through the Game – OpenAI’s CEO instantly rejected the bid, making it clear that OpenAI would not fall into Musk’s hands. His sarcastic reply on X—offering to buy Twitter instead for $9.74 billion—signaled just how unserious he considered Musk’s move.
Now Musk is Playing the Public Sentiment Card – After failing to acquire OpenAI, Musk is trying a new strategy:

He says he will only withdraw his bid if OpenAI stays a nonprofit.
But this isn’t a generous move—it’s a trap.
If OpenAI stays a nonprofit, it loses access to billions in funding, while Musk’s xAI keeps growing.

The Real Plan: Weaken OpenAI to Strengthen xAI – Musk knows that as a for-profit company, OpenAI could dominate the AI industry. By pushing the idea that it must remain a nonprofit, he is trying to cripple OpenAI’s ability to scale and compete.
Musk’s Broader Power Grab is Dangerous – His influence in tech, business, and even politics is growing. With deep ties to Trump and a role in the U.S. government, he is positioning himself to control AI’s future while blocking competitors.

Deep Analysis: Musk’s Endgame is to Kill OpenAI, Not Save It

Musk’s latest move isn’t about OpenAI’s mission—it’s about eliminating his biggest AI rival.

Step 1: A Hostile Bid That Was Never Meant to Succeed

Musk knew that OpenAI would never accept his bid. Sam Altman and OpenAI’s board had no reason to sell to him, especially after years of lawsuits, public attacks, and corporate sabotage. But Musk made the bid anyway—why?

💡 To stir chaos, create uncertainty, and slow down OpenAI’s transformation into a powerful for-profit AI leader.

Step 2: “Fine, I’ll Withdraw—But Only If It Stays a Nonprofit”

Now that the bid has been rejected, Musk is trying a new trick:

He’s pretending to take the high road, saying he will only withdraw his bid if OpenAI stays nonprofit.
This creates public pressure on OpenAI to stay nonprofit, making it harder for the company to secure major funding and compete at scale.
Meanwhile, xAI continues expanding as a fully commercial AI company, giving Musk a clear advantage.

🔑 If OpenAI remains a nonprofit, it loses billions in funding and slows down—exactly what Musk wants.

Step 3: Musk’s True Goal—xAI on Top, OpenAI Weakened

Musk doesn’t care about OpenAI’s mission—he wants xAI to win. And the best way to ensure that is to cripple OpenAI’s ability to raise money and dominate the AI landscape.

He knows that keeping OpenAI as a nonprofit would limit its ability to scale, while xAI would remain free to pursue unlimited funding, partnerships, and commercial deals.

Why Musk’s Strategy Will Fail

OpenAI Has the Upper Hand

OpenAI is already deeply integrated with Microsoft, which has invested $13 billion.
Its GPT models lead the industry, and its AI ecosystem is growing faster than xAI’s.

Sam Altman Won’t Back Down

Altman’s immediate rejection of the bid shows that he won’t be manipulated into keeping OpenAI weak.
His sarcastic Twitter response highlights how unserious Musk’s bid actually was.

Musk’s Reputation for Manipulation is Catching Up to Him

His chaotic leadership style (Twitter/X, Tesla, SpaceX) has caused high-profile talent to leave his companies.
Many in the industry no longer see Musk as a visionary but as a self-serving opportunist.

Regulators and the Public May Push Back

Musk’s political influence is growing, but so is the backlash against his consolidation of power.
His increasing control over AI, space, electric vehicles, and even government efficiency is raising red flags worldwide.

A Reflection of xAI's Current Losing Struggle

This entire maneuver exposes the fundamental weakness of xAI—because if Musk’s company could compete directly with OpenAI, he wouldn’t need to resort to these tricks. His attempt to derail OpenAI’s transition into a for-profit entity is a classic move used by companies that can’t win on merit but can still stir the market through disruption. Instead of outpacing OpenAI with superior technology or innovation, Musk is relying on legal maneuvers, public manipulation, and power plays to manufacture obstacles for his biggest competitor. This suggests that xAI simply isn’t strong enough to challenge OpenAI head-on and, more importantly, might never be truly capable of leading the AI industry in the long run.

Did You Know?

Musk’s Close Ties to Trump Could Shape AI Policy
As a close advisor to Trump and head of the new U.S. Department of Government Efficiency, Musk now has influence over AI regulation, which could benefit xAI.
Musk Has a History of Trying to Control AI
He left OpenAI in 2018 after failing to take full control.
He has repeatedly attacked OpenAI for going commercial—while doing the same with xAI.
Musk’s AI Ethics Arguments Are Hypocritical
He claims OpenAI is prioritizing profits over safety.
But xAI is also a fully for-profit company with zero transparency or governance structures.

Final Verdict: Musk’s Plan to Weaken OpenAI is Transparent—But OpenAI is Winning

Elon Musk’s latest attack on OpenAI isn’t about AI ethics or nonprofit values—it’s about power.

💡 His hostile bid was never meant to succeed—it was meant to create chaos and slow OpenAI down. Now, his pivot to demanding OpenAI stay a nonprofit is just another strategy to cripple its growth and give xAI an advantage.

But despite Musk’s efforts, OpenAI is still far ahead. With Microsoft’s backing, cutting-edge research, and leadership that refuses to be manipulated, OpenAI is on track to remain the dominant force in AI—whether Musk likes it or not.

The real question is: Will the world let Musk manipulate the future of AI for his own gain?

What’s Next?

Will regulators step in and push back against Musk’s growing influence?
How will OpenAI continue its transformation despite Musk’s attacks?
Will xAI ever truly catch up to OpenAI’s technological dominance?

One thing is clear: Musk’s tactics are transparent, but OpenAI isn’t falling for them.