Silicon Valley's most intense AI rivalry has just reached new heights as Elon Musk announced a staggering $97.4 billion bid to acquire OpenAI's non-profit arm. According to The Wall Street Journal, the offer was presented to OpenAI's board on Monday morning, marking a dramatic escalation in the ongoing battle between Musk and OpenAI's CEO Sam Altman.

The bid is backed by a powerful coalition of investors, including Musk's own AI company xAI, venture capital firms Valor Equity Partners and 8VC, as well as Hollywood mogul Ari Emanuel. This move is seen as Musk's boldest attempt yet to challenge OpenAI's direction, which he believes has strayed from its original mission to develop AI safely and openly.

Musk co-founded OpenAI in 2015 alongside Altman, but departed in 2019. Since then, he has been vocal about his concerns regarding OpenAI's shift towards a more commercial approach. In a statement, Musk emphasized his commitment to restoring OpenAI's original mission, stating, "It's time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens."

This bid comes at a critical juncture for OpenAI, which is currently navigating multiple massive deals, including a planned for-profit conversion valued at $340 billion and a $500 billion AI infrastructure project. Musk's offer adds a layer of complexity to these negotiations, as his team has promised to match or exceed any higher bids. This puts Altman in a difficult position, as he must weigh the pros and cons of accepting Musk's offer against the interests of other stakeholders, including Microsoft.

In response to the news, Altman took to X, posting a tongue-in-cheek message: "no thank you but we will buy twitter for $9.74 billion if you want." OpenAI has since referred to this post as its official comment on the matter. Musk's lawyer, Marc Toberoff, did not immediately respond to a request for comment.

The implications of this bid are far-reaching, with significant consequences for the future of AI development and the tech industry as a whole. As the rivalry between Musk and Altman continues to intensify, it remains to be seen how this will play out and what the ultimate outcome will be for OpenAI and the broader AI landscape.

One thing is certain, however: this development marks a pivotal moment in the ongoing struggle for dominance in the AI sector. As the stakes continue to rise, the tech world will be watching closely to see how this drama unfolds.