OpenAI chief executive Sam Altman has rejected a $97.4 billion (approximately Sh12.58 trillion) takeover bid from a consortium of investors led by billionaire Elon Musk.

Musk’s attorney, Marc Toberoff, confirmed the offer for "all assets" of OpenAI was submitted to its board on Monday.

However, Altman dismissed the bid with a post on Musk’s social media platform X: "no thank you but we will buy twitter for $9.74 billion if you want."

The board will have the final say on the offer, and there is speculation that an increased bid could change its position.

Questions also remain about whether Musk is serious about acquiring OpenAI or if the offer is part of an ongoing legal dispute between the two.

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Musk and Altman co-founded OpenAI in 2015 as a non-profit, but their relationship deteriorated after Musk left in 2018.

Altman has since moved OpenAI towards a for-profit model, a decision Musk claims contradicts its original mission.

OpenAI argues the shift is necessary to fund AI development.

The bid comes as OpenAI’s valuation has reportedly surged to $300 billion, significantly higher than Musk’s offer.

Toberoff stated the consortium is willing to "consider matching or exceeding" any higher bid.

Musk’s camp claims he is best suited to lead OpenAI, with his attorney stating, "As the co-founder of OpenAI and the most innovative and successful tech industry leader in history, Musk is the person best positioned to protect and grow OpenAI's technology."

However, some are sceptical. Tech investor Christie Pitts said: "I think it's fair to be pretty suspicious of this considering that he has a competitor himself… which is structured as a for-profit company, so I think there's more than meets the eye here."

Meanwhile, OpenAI has joined forces with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to develop a $500 billion AI infrastructure project in the US.

Announced at the White House by President Donald Trump, he described it as "the largest AI infrastructure project by far in history."

Musk, despite advising Trump, has questioned the project’s financial viability, claiming it does not actually have the money to fulfil its commitment, though he has provided no evidence.

With OpenAI’s future hanging in the balance, it remains unclear if Musk will improve his offer or shift his focus elsewhere.