Elon Musk asked Meta CEO Mark Zuckerberg to join xAI bid to buy OpenAI, filing shows

Court filings in the ongoing legal dispute between Elon Musk and OpenAI reveal Musk approached Meta CEO Mark Zuckerberg in early 2025 seeking financing for a $97.4 billion takeover of OpenAI. This disclosure, part of OpenAI's efforts to subpoena Meta for related communications, underscores the escalating competitive and litigious landscape within the generative AI sector, stemming from Musk's opposition to OpenAI's shift to a for-profit entity and his subsequent lawsuit against the company.

Analysis

New court filings reveal a significant, previously undisclosed event in the competitive AI landscape: Elon Musk sought financing from Meta's Mark Zuckerberg for a $97.4 billion takeover bid for OpenAI in early 2025. This attempted maneuver, part of Musk's broader legal and public campaign against OpenAI's for-profit pivot, underscores the extreme measures being contemplated to secure dominance in the generative AI sector. The filing indicates Meta did not sign the letter of intent, suggesting a strategic decision to avoid entanglement in the complex dispute and instead focus on its own significant internal AI development, which includes aggressive talent acquisition from rivals like OpenAI. For Microsoft, OpenAI's primary financial backer, this news highlights the persistent governance and strategic risks associated with its key partner, as co-founder-related conflicts escalate from litigation to attempted hostile takeovers. The revelation paints a picture of a market characterized not just by technological competition, but by high-stakes corporate maneuvering, personal animosities, and legal warfare among its most prominent figures.

Key Decisions for Investors

• For investors in Meta (META), its refusal to finance the bid while independently investing heavily in AI should be seen as a sign of strategic discipline, reinforcing its position as a primary, self-sufficient competitor rather than a financial partner to a rival's ambitions.
• Investors in Microsoft (MSFT) should consider this a materialization of the governance risks inherent in its partnership with OpenAI, warranting close monitoring of the Musk litigation for any outcomes that could impact OpenAI's structure or Microsoft's investment thesis.
• The events signal a heightened level of event risk across the AI sector, driven by M&A speculation and legal battles, suggesting that portfolio allocations should account for potential volatility stemming from the intertwined personal and corporate conflicts among tech leaders.