Musk’s attorney, Marc Toberoff, confirmed that the offer for "all assets" of the AI firm was submitted to OpenAI’s board on Monday. The move marks the latest development in an ongoing rivalry between Musk and OpenAI’s Chief Executive, Sam Altman, over the company's future direction.

Responding to the bid, Altman took to Musk’s social media platform, X, stating: "No thank you but we will buy Twitter for $9.74 billion if you want."

The takeover attempt is backed by Musk’s AI venture, xAI, alongside private equity firms including Baron Capital Group and Valor Management.

Musk has framed the bid as a way to restore OpenAI’s original vision. This is after reports that the company planned a significant restructure that will transform it into a for-profit benefit corporation. This restructuring, reminiscent of models followed by competitors like Anthropic and X.ai, represents a break from the organisation’s original non-profit framework. This move will mark a profound change in OpenAI’s governance and business model.

"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," Musk said in a statement.

The offer comes in significantly below OpenAI’s last reported valuation of $157bn in October and well short of the $340bn figure reportedly being discussed in new funding talks. However, Toberoff indicated that the consortium is open to increasing the bid.

"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," Toberoff said on behalf of Musk and the investors.

The bid raises further questions about OpenAI’s future and the broader battle for control over artificial intelligence innovation.