Elon Musk is at the forefront of a $97.4 billion bid to acquire the assets of the nonprofit that controls OpenAI, further intensifying his ongoing clash with OpenAI CEO Sam Altman. The group backing Musk’s bid includes Vy Capital, Xai (Musk’s AI company), Hollywood mogul Ari Emanuel, and other investors.

This move represents Musk’s latest attempt to take control of an organization he co-founded nearly a decade ago. However, the bid faces strong resistance, as OpenAI’s board is closely aligned with Altman, who swiftly dismissed Musk’s offer with a pointed remark: “No thank you but we will buy Twitter for $9.74 billion if you want.” Musk responded with a sharp “Swindler.”

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Despite the tense exchange, Musk’s offer complicates OpenAI’s plans to complete a $40 billion fundraising round, which would nearly double the company’s valuation to $300 billion. Led by SoftBank, this deal would position OpenAI among the world’s most valuable private companies, alongside Musk’s SpaceX and ByteDance, the parent company of TikTok.

OpenAI’s board of directors, which remains loyal to Altman, may need to deal with the complex challenge of compensating the nonprofit that controls OpenAI if they move ahead with Musk’s bid. OpenAI, with over 2,000 employees, is structured with a nonprofit board that has legal control despite its limited resources, with only two employees and $22 million in assets.

Musk’s bid could force OpenAI to pay a high price for separating from the nonprofit board, which has led to legal scrutiny. In the eyes of many experts, Musk’s proposal is an effort to set the nonprofit’s assets at a very high value, which would create challenges for OpenAI’s move to full independence. The nonprofit’s board must ensure that the sale of assets is at fair market value, or they could face questions from charity regulators.

Musk’s aggressive approach signals his intent to reshape the AI industry, with his own AI company, Xai, directly competing with OpenAI. At the same time, Altman has garnered significant support in Washington, securing investments and backing from major players like SoftBank and Oracle.

The ongoing battle for control of OpenAI illustrates the high stakes involved in the race for artificial intelligence supremacy, with Musk and Altman at the center of a high-profile tech showdown.