OpenAI Probes Meta’s Role in Elon Musk’s $97B Takeover Bid: What It Means for Startup Strategy

OpenAI is seeking court-ordered evidence from Meta concerning potential collaboration between Mark Zuckerberg and Elon Musk over a massive $97 billion bid for OpenAI. Legal filings made public reveal that OpenAI’s lawyers want documents detailing any plans Meta, Musk, and xAI may have discussed to invest in or acquire the ChatGPT creator.

Background: The $97 Billion Power Play

The controversy stems from Elon Musk’s unsolicited $97 billion takeover attempt for OpenAI in February, which the OpenAI board unanimously rejected. Since then, the legal dispute has intensified, with OpenAI’s attorneys now requesting specifics about communication between Musk, Zuckerberg, and Meta regarding financing or strategic partnership in the potential deal. Meta objected to the initial subpoena, but OpenAI is pushing for court intervention to obtain these records. The exact existence or content of such documents remains uncertain.

The Battle for AI Dominance

While OpenAI has been fending off Musk’s legal maneuvers, Meta has been accelerating its own AI ambitions. In 2023, Meta’s executive team was reportedly focused on surpassing OpenAI’s GPT-4, but by early 2025, their models lagged behind, evidently leading to internal frustration. Recently, Meta has actively recruited top OpenAI talent and invested heavily—including a $14 billion investment in Scale AI and attempts to acquire other AI firms. Among those poached is Shengjia Zhao, a co-creator of ChatGPT, now leading Meta Superintelligence Labs.

Shifting Alliances in the Age of AI

The prospect of Musk and Zuckerberg collaborating, despite their public rivalry, illustrates the high stakes and shifting dynamics within AI leadership. Not long ago, Musk and Zuckerberg’s competitive spat nearly resulted in an actual cage match (which never occurred); now, the explosive growth and strategic potential of AI may be encouraging even fierce rivals to explore joint ventures or investment deals.

Meta, for its part, points out that neither Meta nor Zuckerberg formally signed Musk’s letter of intent. Nevertheless, OpenAI’s lawyers remain determined to uncover any deeper ties or coordinated strategies.

Deep Founder Analysis

Why it matters

This legal and strategic clash underscores how foundational AI companies have become in shaping the future of technology. For founders, the episode signals just how much control of frontier AI can disrupt industry hierarchies, partnerships, and even traditional competitive playbooks. It illustrates the growing importance of legal maneuvering, IP rights, and cross-company alliances in the quest for AI market dominance.

Risks & opportunities

The rise in litigation and attempted mega-acquisitions presents clear risks for startups, such as unpredictable regulatory environments and the risk of being caught between aggressive incumbents. On the flip side, aggressive M&A activity and talent wars indicate that specialized AI startups (especially those strong in infrastructure, model safety, or fine-tuning) may find outsized exit or partnership opportunities—even in competitive or uncertain conditions. The case of OpenAI and Meta also hints at a world where founder rivalries can quickly shift to collaborations if mutual threats or market incentives are large enough.

Startup idea or application

Inspired by these dynamics, a concrete startup concept could involve creating a neutral AI escrow and negotiation platform for high-stakes investment or talent transfers in the AI sector. This service could facilitate secure due diligence, compliance tracking, and risk management for founders navigating the increasingly complex relationships among tech giants.

Ongoing Lawsuit and Industry Implications

This briefing is one part of Musk’s larger lawsuit challenging OpenAI’s transformation into a public benefit corporation in its transition to for-profit status. Musk claims the restructuring violates OpenAI's founding mission, aiming to block the move through litigation. Meanwhile, Meta’s attorneys oppose OpenAI’s evidence requests, arguing that Musk and xAI already possess the relevant information, and that any internal Meta discussions are immaterial to the outcome.

For more context on alliances and AI strategy in the tech industry, check out our related article: GPT-5 Gets a Friendlier Update: What It Means for the AI Ecosystem.

OpenAI Meta Elon Musk AI Strategy Tech Industry

Visit Deep Founder to learn how to start your own startup, validate your idea, and build it from scratch.

📚 Read more articles in our Deep Founder blog.