Sam Altman at The Age of AI Panel, Berlin.
The ongoing feud between tech billionaires Elon Musk and Sam Altman took another turn recently with news of a substantial, yet unsolicited, bid for OpenAI. According to the Wall Street Journal, a consortium backed by Musk’s xAI offered a staggering $97.4 billion for control of the leading AI company. This move comes just months after Musk initiated legal action against OpenAI regarding its shift to a for-profit structure.
Musk’s Justification and Altman’s Response
Musk, through his lawyer, stated his intention to restore OpenAI to its original vision as an “open-source, safety-focused force for good.” The proposed acquisition, potentially involving a merger between xAI and OpenAI, was swiftly rebuffed by Altman. Instead of accepting the offer, Altman countered with a playful proposal to purchase Musk’s X (formerly Twitter) for the considerably smaller sum of $9.74 billion.
A History of Disagreements
The tension between Musk and Altman is not new. They co-founded OpenAI in 2015, but Musk resigned from the board in 2018 after his demands for majority equity, absolute control, and the CEO position were declined. He subsequently founded xAI, the company behind the Grok chatbot, in 2023.
A Series of Legal and Public Challenges
Musk’s actions towards OpenAI have included co-signing an open letter in March 2023 calling for a pause in AI training, coincidentally just six months before xAI’s public launch. He also shared an anonymous letter containing unsubstantiated accusations against Altman, the source of which was later traced to an anonymous message board.
Multiple lawsuits have been filed by Musk against OpenAI. One lawsuit, initially filed in March 2024 and later withdrawn, alleged a breach of contract regarding OpenAI’s pursuit of commercial interests. This suit was revived in August with similar claims. In November, the lawsuit expanded to include Microsoft, a major investor in OpenAI, with Shivon Zilis, the mother of three of Musk’s children, joining as a plaintiff. OpenAI responded by publishing a blog post detailing Musk’s initial support for the for-profit transition, backed by email evidence.
The Ongoing Feud
The ongoing legal battle and public exchanges between Musk and Altman highlight their fundamental disagreements about the direction of AI development. With the feud now spanning over six years, the recent bid and its rejection suggest that the conflict is far from resolved.
The Future of OpenAI and xAI
While the future remains uncertain, the clash between these two prominent figures in the tech world will undoubtedly continue to shape the landscape of artificial intelligence. The contrasting visions for OpenAI, one driven by open-source principles and the other by commercial interests, are at the heart of this ongoing dispute.
