Elon Musk’s unsolicited $97 billion bid for OpenAI‘s assets has created a valuation challenge for the artificial intelligence leader, potentially complicating its planned transition to a for-profit structure.

Legal experts suggest the offer, though swiftly rejected, could force regulators to scrutinize OpenAI’s corporate restructuring more closely. The bid “will be more difficult to justify valuing the nonprofit’s assets at less than $97 billion if there is a concrete offer for that sum,” according to a report by The Economist.

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Musk, OpenAI’s co-founder and now rival, submitted the bid through a consortium on Feb. 11, targeting the non-profit entity that controls the company. The move escalates his feud with CEO Sam Altman over the company’s shift toward a more traditional corporate structure.

“OpenAI is not for sale,” company spokesman Chris Lehane told The Economist.

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Jill Horwitz, law professor at the University of California, Los Angeles, said that the nonprofit board’s fiduciary duty is to act according to OpenAI’s legal purpose—building safe artificial intelligence that “benefits all of humanity.” The mission-focused obligation may provide flexibility in responding to acquisition offers.

Musk’s legal team has urged attorneys general in California and Delaware, where OpenAI operates, to ensure the nonprofit surrenders control at fair market value during any restructuring. 

While company insiders doubt state officials will acquiesce to Musk, Horwitz noted they have “clear law to apply” regarding proper valuation.

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The bid follows recent tensions over the “Stargate Project,” a $100 billion data center investment fund announced by Altman and President Donald Trump on Jan. 21. Musk publicly questioned whether the project’s backers had sufficient funding, allegations they denied.

Altman responded to Musk’s bid with a facetious counteroffer on X—$9.7 billion to “buy Twitter,” as Musk’s social network was previously known. “I think he’s just trying to slow us down,” Altman told Bloomberg. “I feel for the guy. I don’t think he’s a happy person.”

The offer represents another front in Musk’s competitive strategy against his largest AI rival. He launched xAI in 2023, positioning it as a direct competitor to OpenAI.

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