Elon Musk’s $97.4 billion bid to take over OpenAI has collapsed after Meta CEO Mark Zuckerberg declined to participate, exposing deep fractures among AI’s most powerful players.
At a Glance
- Musk’s xAI led a $97.4 billion unsolicited bid to acquire OpenAI in early 2025
- Court filings show Musk approached Zuckerberg for support—Meta declined
- OpenAI responded by issuing subpoenas and escalating litigation
- Legal battles spotlight tensions over transparency and corporate governance
- Experts warn of rising risks from concentrated AI power and secretive deals
High-Stakes Offer, Unlikely Outreach
In a move that stunned the tech world, Elon Musk spearheaded a $97.4 billion bid via his company xAI to take control of OpenAI—a firm he co-founded but later departed. According to unsealed court documents, Musk’s consortium made a direct overture to Meta CEO Mark Zuckerberg, inviting him to join forces in the audacious acquisition attempt. Despite their history of personal and professional conflict, Musk’s outreach appeared to prioritize strategic gain over rivalry.
Watch now: Elon Musk Tried to Buy OpenAI for $97B — Zuckerberg Said No · YouTube
Zuckerberg’s refusal to participate dealt a significant blow to the proposal, and Meta has publicly denied any involvement in the takeover. The overture, revealed through court filings tied to Musk’s broader legal dispute with OpenAI, highlights the exceptional nature of corporate dynamics shaping AI’s future—where billion-dollar decisions hinge on private negotiations between a handful of industry moguls.
Legal Fallout and Strategic Exposure
After the failed acquisition attempt, OpenAI launched legal efforts to investigate potential coordination between xAI and Meta, issuing subpoenas to compel disclosure of related communications. Meta has so far resisted further engagement, stating it was not formally involved. Meanwhile, litigation between Musk and OpenAI has intensified, centering on allegations that OpenAI breached its original nonprofit principles and allowed corporate interests to dominate strategic decisions.
Policy analysts note that the Musk–OpenAI lawsuit marks a broader reckoning with AI governance practices. The swift evolution of partnerships, structures, and competitive alliances often outpaces regulatory scrutiny, leaving the public with little insight into how critical technologies are being shaped—and by whom.
Concentrated Control and Public Risk
Scholars like Marietje Schaake of Stanford argue that the Musk-Zuckerberg episode reveals how little democratic oversight exists over AI systems that will profoundly affect society. The shift from OpenAI’s nonprofit origins to a for-profit structure intertwined with corporate giants like Microsoft reflects a broader trend of mission drift. The concentration of AI development within a tight circle of executives has intensified calls for new governance frameworks to protect public interests.
Institutions such as the Brookings Institution and the Carnegie Endowment have raised alarms over the erosion of transparency and accountability in AI’s rapid commercialization. For stakeholders advocating limited government and individual liberty, the episode underscores the risks of placing transformative technologies under private control with minimal checks.
Looking ahead, the outcome of Musk’s legal entanglements with OpenAI—and the public scrutiny it has triggered—may influence how AI firms operate, how their leaders are held accountable, and whether future industry governance prioritizes openness or preserves elite control.
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