Musk asked Zuckerberg to fund $97.4b OpenAI bid, filing shows

Elon Musk approached Meta CEO Mark Zuckerberg in early 2025 to discuss financing a US$97.4 billion takeover bid for OpenAI, according to court filings released on August 21.

The disclosure comes from an ongoing legal dispute between Musk and OpenAI in a federal court in Northern California.

Musk, who helped found OpenAI in 2015, has clashed with CEO Sam Altman over its shift to a for-profit model and launched xAI in 2023 as a rival.

OpenAI has filed counterclaims, alleging Musk and xAI’s “sham bid” harmed its business, and accusing Musk of harassment through litigation and public criticism.

The filings said Musk contacted Zuckerberg with a letter of intent, but neither Meta nor Zuckerberg signed it.

OpenAI has also subpoenaed Meta for related communications, while Meta has objected, calling the requests overly burdensome.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Musk’s $97 billion bid reveals OpenAI’s explosive value growth

The $97.4 billion takeover bid that Musk proposed in February now appears dramatically undervalued given OpenAI’s current trajectory1.

OpenAI is reportedly nearing a $500 billion valuation, which would make it the most valuable private company globally2. The company closed a $40 billion funding round at a $300 billion valuation and projects revenues will surge from $3.7 billion in 2024 to $12.7 billion in 20253 4.

This means Musk’s bid was less than 20% of OpenAI’s current estimated worth, suggesting either remarkable timing in terms of the company’s rapid appreciation or a significantly lowball offer.

The scale of OpenAI’s growth helps explain why the bid included complex consortium financing arrangements with multiple investors rather than a straightforward acquisition.

2️⃣ AI talent wars drive billion-dollar strategic alliances

Meta’s involvement in Musk’s consortium discussions reflects the broader battle for AI supremacy that’s reshaping industry partnerships.

According to court filings, Meta has been “offering pay packages of $100 million or more to leading AI researchers and attempting to poach OpenAI employees”1. This talent war extends across the sector, with OpenAI, Google, and xAI all competing fiercely for top researchers5.