Elon Musk, Sam Altman, and other investors founded OpenAI in 2015. Their goal was to create artificial intelligence that could help humanity. However, their visions quickly diverged. Altman wanted OpenAI to remain a non-profit, whereas Musk became concerned about AI’s potential hazards. He asked politicians to govern AI, describing it as an “existential risk.”
Musk’s Criticism of OpenAI
In 2018, Musk attempted to seize control of OpenAI, but the board rejected his proposal. As a result, he decided to leave the company and withdraw his investment. Some stories claim that Musk was fired rather than departing freely.
Following his departure, Musk continued to criticize OpenAI. He claimed the corporation was becoming secretive and drifting away from its basic objective. He told MIT Technology Review that “OpenAI should be more open.” His fears about AI safety remained high, and he advocated for regulations.
The Rise of ChatGPT and the Twitter Clash
Musk acquired Twitter in October 2022 and implemented significant changes, including the removal of content control. Around the same time, OpenAI introduced ChatGPT. Musk accused OpenAI of forsaking its open-source strategy, claiming that “OpenAI was founded as open-source and non-profit.” “Neither is still true.” Altman defended the company’s move to a “limited profit corporation” to acquire finances while remaining true to its objective.
Musk’s Attempts to Slow AI Development
Over the years, Musk has taken multiple steps to slow down AI progress, arguing that the risks outweigh the benefits. His concerns are not restricted to OpenAI alone. He has often advocated for government intervention to regulate AI research. In 2023, he testified before Congress, pushing lawmakers to enact strict AI safety regulations. He referred to AI as “the most dangerous technology ever developed.”
The Open Letter for an AI Pause
Musk, along with over 1,000 other industry experts, including Apple co-founder Steve Wozniak and AI researchers, signed an open letter in March 2023 requesting a six-month freeze in AI development. The letter warned of “profound risks to society and humanity” and stressed that AI labs were in an “out-of-control race” to develop ever-more-powerful systems.
The letter urged governments and AI companies to collaborate to ensure AI’s good effects and controllable threats. However, OpenAI and other big AI firms did not respond to the appeal. Instead, AI development continued at full pace, with companies such as Google, Meta, and OpenAI releasing more powerful models.
Musk’s Lawsuit Against OpenAI
Musk, frustrated by the rapid advancement of AI, filed a lawsuit against OpenAI in 2024. He sued the corporation, alleging that it had broken its basic values by becoming a “closed-source, maximum-profit” entity controlled by Microsoft. Though he eventually dropped the complaint, he launched a new one in August, accusing OpenAI of tricking him into co-founding the firm. The complaint claimed that OpenAI was no longer committed to developing AI for the sake of humanity, but rather was motivated by business interests.
Launching xAI
Despite his warnings about AI’s dangers, Musk launched his own AI company, xAI, in 2023. The move led many to question his true motives. If AI was so dangerous, why was he investing billions to build his competitor to OpenAI?
Musk justified his decision, claiming that xAI would advance AI more transparently and responsibly. He asserted that OpenAI had abandoned its dedication to open-source AI and that xAI would restore these ideals. However, critics pointed out that xAI is a for-profit corporation, therefore it is no different from OpenAI in terms of commercialization.
Skepticism Over Musk’s Intentions
Musk’s offer to buy OpenAI for $97.4 billion is the highest point of his long-running feud with Altman. His declared goal is to reinstate OpenAI to its original mission of developing AI for humanity as a non-profit. However, given that Musk owns xAI, a direct competitor, many people question his genuine objectives.
Christie Pitts, a tech investor, expressed doubt to the BBC, stating, “I think it’s fair to be pretty suspicious of this considering that he has a competitor…” which is organized as a for-profit enterprise.” Altman shares this skepticism, telling Axios that Musk is simply “a competitor who is not able to beat us in the market” and is now trying to buy OpenAI instead.
OpenAI’s Complicated Structure
Unlike Meta and Microsoft, OpenAI is not publicly traded. It works under a hybrid structure that combines a non-profit arm and a for-profit corporation. Altman, the non-profit’s CEO, sits on its board but owns no equity in OpenAI. He believes that transitioning OpenAI into a fully for-profit firm will increase financing for AI research. In this way, OpenAI could secure the vast funding it needs to remain competitive in the AI race.
However, Altman is not the only decision-maker for OpenAI’s future. The board will eventually determine whether to accept Musk’s offer, particularly if he raises it. Currently, the $97.4 billion price is significantly lower than OpenAI’s $157 billion valuation from October 2024. Recent investment conversations indicate that OpenAI could soon be valued at $300 billion, making Musk’s offer appear weak.
The Trump Factor and The Stargate Project
The situation gets worse with OpenAI’s next effort, The Stargate Project. The company has teamed with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund to develop $500 billion in AI infrastructure in the United States. President Donald Trump unveiled the project at the White House, calling it “the largest AI infrastructure project by far in history.“
Musk, despite his close links to Trump, has questioned Stargate’s validity. He says the initiative does not “actually have the money” that it promises to invest, but he provides no proof to support his claim. Given Musk’s own AI goals, his criticism may stem from competition rather than financial worries.
The Battle of Wealth and Influence
Musk, the world’s richest man, is believed to be worth $392 billion, with the majority of his fortune coming from Tesla and SpaceX. Meanwhile, Altman, who has a $1.2 billion net worth, does not own any shares in OpenAI. However, Bloomberg claims that OpenAI has explored giving him a 7% stake, possibly worth $11 billion.
Musk’s legal team claims he is “the person best positioned to protect and grow OpenAI’s technology.” It has even expressed a willingness to exceed any future valuation. If OpenAI’s board supports a sale, the offer may become impossible to refuse. For the time being, the battle is still ongoing. With Musk’s immense wealth and power on one side and Altman’s strategic partnerships on the other, OpenAI’s future is uncertain.
