OpenAI is exploring the idea of building a social media platform to rival Elon Musk’s X and Meta’s Instagram, according to a source familiar with the plans reported to CNBC.
The project is still in early development and stems from the popularity of OpenAI’s new image-generation tool, which has been straining the company’s servers under heavy use.
The Verge was first to report the news, and at the time of publication, OpenAI had declined to comment.
Now operating far from its original ethos of non-profit and research, the option to branch out into social media is at least being investigated by the company as a way that it can popularise and monetise its AI investments.
OpenAI’s image generation features launched in March, and allows users to generate visuals such as diagrams, infographics, logos, and stylised portraits. Some of the more popular uses include animē-inspired selfies and AI-generated headshots, which have been shared widely on platforms like X and TikTok, and even OpenAI CEO Sam Altman briefly adopted an AI-generated image for his X profile. The surge in interest on launch prompted OpenAI to have to temporarily limit the feature, citing overloaded GPUs.
Behind the scenes, OpenAI continues to face competition from other generative AI players, including Musk’s startup, xAI. The rivalry between Altman and Musk – who co-founded OpenAI in 2015 when it was a nonprofit research lab – has grown contentious, playing out in court and public statements. Musk is currently suing OpenAI, alleging the company has veered too far from its original mission in its prioritisation of profit. In February, a Musk-led group made an unsolicited offer to acquire OpenAI for $97.4 billion, but the bid was rejected.
The offer, which has been confirmed by Musk’s attorney, proposed a purchase all of OpenAI’s assets with the intent of returning the organisation to what the group described as its “open-source, safety-focused” roots. Musk’s group included investors from xAI and long-time backers from his other ventures, like Baron Capital, Vy Capital, and 8VC. The rejected proposal was presented as a push to redirect OpenAI’s trajectory.
Meanwhile, OpenAI is working to secure its financial position and scale its AI infrastructure. The company recently closed a $40 billion funding round, one of the largest ever recorded for a private technology firm. This funding round raises OpenAI at $300 billion, placing it among the most highly valued private companies globally – just behind SpaceX and on par with ByteDance, the parent company of TikTok.
Japan’s SoftBank is prominent among the round’s members with a reported $30 billion investment, with other investors that include Microsoft, Coatue, Altimeter, and Thrive. According to sources familiar with the deal, $18 billion of tht total will go toward OpenAI’s commitment to a large-scale AI infrastructure initiative, Stargate, a joint venture with SoftBank and Oracle announced in January by President Donald Trump.
OpenAI’s funding round is scheduled in two parts, with an initial $10 billion followed by an additional $30 billion by the end of 2025. However, the agreement includes a clause that could reduce SoftBank’s investment to as low as $20 billion unless OpenAI completes its transition into a for-profit entity by the end of this year.
OpenAI’s current structure includes a capped-profit arrangement created in 2019, with its nonprofit parent still in control. Fully transitioning to a for-profit model would require clearance from Microsoft and the California attorney general, as well as facing constant legal opposition from Musk.
Even as OpenAI experiments with new applications like image tools and social media, its structural future remains uncertain. The outcome of its corporate restructuring, as well as its ability to manage mounting investor expectations, may shape not just its future products, but also its place in the wider AI landscape.
