Sam Altman and Elon Musk: The Battle Over OpenAI Turns Personal

The competition between Sam Altman and Elon Musk over the future of artificial intelligence has reached new heights, with OpenAI’s CEO rejecting a staggering $97.4 billion buyout offer from Musk and his group of investors. Altman’s refusal signals his commitment to OpenAI’s mission, even as the tech billionaire ramps up legal and competitive pressure.

Musk, a co-founder of OpenAI who later parted ways with the organization, has accused Altman of shifting OpenAI’s focus toward profit rather than the nonprofit ideals it was founded upon. His recent bid to acquire the company has fueled speculation about his true intentions – whether he genuinely wants to steer OpenAI or simply slow its momentum.

Altman’s Take: Musk Is Trying to Disrupt OpenAI

Speaking at the Paris AI Action Summit, Altman suggested that Musk’s actions are less about advancing AI and more about disrupting OpenAI’s progress.

“Elon tries all sorts of things for a long time. This is the latest – you know, this week’s episode,” Altman said in an interview with Bloomberg TV. “I think he’s probably just trying to slow us down.”

Musk’s offer to buy OpenAI could significantly complicate the organization’s plans, especially as it considers restructuring its for-profit division while maintaining its nonprofit oversight. However, it remains uncertain whether OpenAI’s board will take the bid seriously, particularly given Musk’s legal battles against the company.

A History of Feuds and Lawsuits

The rivalry between Musk and Altman dates back to Musk’s 2018 departure from OpenAI after failing to convince his fellow co-founders to allow Tesla to acquire the company. Since then, Musk has publicly criticized OpenAI, claiming it has abandoned its mission by pursuing commercialization.

In June 2024, Musk filed a lawsuit against OpenAI, alleging that the company had betrayed its founding principles. However, he later withdrew the suit after OpenAI released emails suggesting Musk himself had once acknowledged the necessity of generating substantial revenue to support AI development. Undeterred, Musk filed a new lawsuit in August 2024, accusing OpenAI of prioritizing profit and engaging in racketeering.

Altman, on the other hand, sees Musk’s attacks as more personal than principled. “I wish he would just compete by building a better product,” Altman remarked, emphasizing his belief that Musk is employing “tactics” rather than genuine competition.

Personal Jabs: Altman on Musk’s Happiness

Beyond legal battles and financial manoeuvres, the dispute has taken a personal turn. When asked if Musk was motivated by insecurity, Altman did not hold back.

“Probably his whole life is from a position of insecurity. I feel for the guy,” Altman stated. “I don’t think he’s a happy person.”

Musk’s team has not responded to these remarks, but the sentiment underscores the deepening divide between the two tech leaders.

The Future of OpenAI

Despite Musk’s accusations, Altman remains steadfast that OpenAI is not shifting to a for-profit model. Instead, he insists that the nonprofit structure will remain “extremely important” in guiding OpenAI’s mission.

“We’re not moving to a for-profit model,” Altman said. “The board is looking at lots of options about how to best structure for this next phase, but the nonprofit is not going anywhere.”

Musk’s $97.4 billion bid, however, raises an important question: How will OpenAI respond? If the offer is serious, OpenAI may need to justify why rejecting it is in the best interest of its mission. While the company is under no fiduciary obligation to maximize financial returns, Musk’s offer could set a new benchmark for OpenAI’s valuation and force it to reassess its next steps.

A Complicated Path Forward

With Musk aggressively pushing his own AI company, x.AI, and Altman doubling down on OpenAI’s independence, the battle between the two tech titans is far from over. Whether Musk is genuinely seeking control or merely looking to disrupt OpenAI, one thing is clear: the world’s most influential AI company is now facing a more complex and high-stakes future than ever before.