The carbon removal contest, announced on Monday morning, will run for four years and is open to teams around the globe.
Fifteen teams will be selected for the competition within 18 months and they will each get $1 million and 25 separate $200,000 scholarships will be given to student teams who enter.
The grand prize winner will be awarded $50 million, second place will receive $20 million, and third place will get $10 million, The Verge reported on Monday.
"We want to make a truly meaningful impact. Carbon negativity, not neutrality," Musk said in a statement.
"This is not a theoretical competition; we want teams that will build real systems that can make a measurable impact and scale to a gigaton level. Whatever it takes. Time is of the essence," he added.