Elon Musk and Sam Altman cofounded OpenAI, but now they're locked in a legal battle. Here's the history of their working relationship and feud.
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Musk and Altman cofounded OpenAI, the creator of ChatGPT, in 2015, alongside other Silicon Valley figures, including Peter Thiel, LinkedIn cofounder Reid Hoffman, and Y Combinator cofounder Jessica Livingston.OpenAI CEO Sam Altman and Elon Musk aimed to create a nonprofit focused on developing AI. Getty The group aimed to create a nonprofit focused on developing artificial intelligence "in the way that is most likely to benefit humanity as a whole," according to a statement on OpenAI's website from December 11, 2015.At the time, Musk said that AI was the "biggest existential threat" to humanity.Musk said AI was the "biggest existential threat" to humanity. Carina Johansen/Getty Images "It's hard to fathom how much human-level AI could benefit society, and it's equally hard to imagine how much it could damage society if built or used incorrectly," a statement announcing the founding of OpenAI reads.Musk stepped down from OpenAI's board of directors in 2018.OpenAI said in a blog post that Musk stepping down would "eliminate" a potential conflict with Tesla. Gilbert Carrasquillo/GC Images "As Tesla continues to become more focused on AI, this will eliminate a potential future conflict for Elon," OpenAI said in a blog post at the time, adding that Musk would continue to provide guidance and donations.With his departure, Musk also backed out of a commitment to provide additional funding to OpenAI, a person involved in the matter told The New Yorker."It was very tough," Altman told the magazine of the situation. "I had to reorient a lot of my life and time to make sure we had enough funding."It was reported that Sam Altman and other OpenAI cofounders had rejected Musk's proposal to run the company in 2018.Sam Altman and other OpenAI cofounders reportedly rejected Musk's proposal to run the company. JASON REDMOND/AFP via Getty Images Semafor reported in 2023 that Musk wanted to run the company on his own in an attempt to beat Google. But when his offer to run the company was rejected, he pulled his funding and left OpenAI's board, the news outlet said.Musk has taken shots at OpenAI on several occasions since leaving.Musk said he didn't have high confidence in Dario Amodei for safety. Frederic Brown/Getty Images Two years after his departure, Musk said, "OpenAI should be more open" in response to an MIT Technology Review article reporting that there was a culture of secrecy there, despite OpenAI frequently proclaiming a commitment to transparency.Musk also added that his "confidence in Dario for safety is not high," referring to Dario Amodei, who led OpenAI's strategy at the time.Musk was reportedly furious about ChatGPT's success, Semafor reported in 2023.OpenAI launched ChatGPT in November 2022. Bill Pugliano/Getty Images In November 2022, the chatbot took off and garnered millions of users for its ability to do everything from write essays to craft basic code.In February 2023, Musk doubled down, saying OpenAI as it exists today is "not what I intended at all."Musk said OpenAI didn't turn out as he intended. Michael Kovac/Getty Images for Vanity Fair "OpenAI was created as an open source (which is why I named it "Open" AI), non-profit company to serve as a counterweight to Google, but now it has become a closed source, maximum-profit company effectively controlled by Microsoft. Not what I intended at all," he said in a tweet.Musk repeated this assertion a month later."I'm still confused as to how a non-profit to which I donated ~$100M somehow became a $30B market cap for-profit. If this is legal, why doesn't everyone do it?" he tweeted.Musk was one of more than 1,000 people who signed an open letter calling for a six-month pause on training advanced AI systems.Musk signed an open letter calling for a six month pause on training advanced AI systems. Dimitrios Kambouris/Getty Images The March 2023 letter, which also received signatures from several AI experts, cited concerns about AI's potential risks to humanity."Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter says.But while he was publicly calling for the pause, Musk was quietly building his own AI competitor, xAI, The New Yorker reported in 2023. He launched the company in March 2023.Altman has addressed some of Musk's gripes about OpenAI.Altman has responded to some of the claims Musk has made about OpenAI. Brian Ach/Getty Images for TechCrunch "To say a positive thing about Elon, I think he really does care about a good future with AGI," Altman said last year on an episode of the "On With Kara Swisher" podcast, referring to artificial general intelligence."I mean, he's a jerk, whatever else you want to say about him he has a style that is not a style that I'd want to have for myself," Altman told Swisher. "But I think he does really care, and he is feeling very stressed about what the future's going to look like for humanity."In response to Musk's claim that OpenAI has turned into "a closed source, maximum-profit company effectively controlled by Microsoft," Altman said on the podcast, "Most of that is not true, and I think Elon knows that."Altman has also referred to Musk as one of his heroes.Altman has referred to Musk as one of his heroes. Drew Angerer/Getty In a March 2023 episode of Lex Fridman's podcast, Altman also said, "Elon is obviously attacking us some on Twitter right now on a few different vectors."Nonetheless, he called Musk one of his heroes, adding, "I believe he is, understandably so, really stressed about AGI safety."In a May 2023 talk at University College London, Altman was asked what he's learned from various mentors, Fortune reported. He answered by speaking about Musk."Certainly learning from Elon about what is just, like, possible to do and that you don't need to accept that, like, hard R&D and hard technology is not something you ignore, that's been super valuable," he said.Musk has since briefly unfollowed Altman on Twitter before following him again; separately, Altman later poked fun at Musk's claim to be a "free speech absolutist."Musk briefly unfollowed Altman on Twitter before following him again. Kevin Dietsch/Getty Images Twitter took aim at posts linking to rival Substack in 2023, forbidding users from retweeting or replying to tweets containing such links, before reversing course. In response to a tweet about the situation, Altman tweeted, "Free speech absolutism on STEROIDS."Musk has called himself a "free speech absolutist" before and said it's one of the reasons he bought Twitter, now X.Altman joked that he'd watch Musk and Mark Zuckerberg's rumored cage fight.Altman joked about watching Musk and Mark Zuckerberg's cage fight. Issei Kato/Reuters "I would go watch if he and Zuck actually did that," he said at the Bloomberg Technology Summit in June 2023, though he said he doesn't think he would ever challenge Musk in a physical fight.Altman also repeated several of his previous remarks about Musk's position on AI."He really cares about AI safety a lot," Altman said at Bloomberg's summit. "We have differences of opinion on some parts, but we both care about that and he wants to make sure we, the world, have the maximal chance at a good outcome."Separately, Altman told The New Yorker in August 2023 that Musk has a my-way-or-the highway approach to issues more broadly."Elon desperately wants the world to be saved. But only if he can be the one to save it," Altman said.Musk first sued Altman and OpenAI in March 2024.Musk has since dropped the original lawsuit against OpenAI. Slaven Vlasic, Andrew Caballero-Reynolds/Getty Images He first sued OpenAI, Altman, and cofounder Greg Brockman in March, alleging the company's direction in recent years has violated its founding principles.His lawyers alleged OpenAI "has been transformed into a closed-source de facto subsidiary of the largest technology company in the world" and is "refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity."In response, OpenAI called the lawsuit "incoherent" and "contradictory,"suggesting Musk was jealous of the company's success without him.A few months later, Musk withdrew the lawsuit, a day before a judge was set to consider the future of the case in a hearing.Musk sued OpenAI again in August 2024, this time claiming he was "deceived" into cofounding the company.Elon Musk appeared to take aim at Sam Altman after the departure of one of OpenAI's most-prominent executives. Marc Piasecki; Justin Sullivan/ Getty Images Musk filed a new lawsuit in August against Altman and cofounder Greg Brockman, who recently left the company for three months and returned a couple of days ago.The lawsuit alleges that OpenAI executives played on Musk's concerns about the existential risks of AI and "assiduously manipulated" him into cofounding the company as a nonprofit. The intent of the company was to focus on building AI safely in an open approach to benefit humanity, the lawsuit says.The company has since decided to take a for-profit approach.OpenAI responded to the lawsuit by stating that "Elon's prior emails continue to speak for themselves."The emails, which were published by OpenAI in March, show correspondence between Musk and OpenAI executives that indicated he supported a pivot to a for-profit model and was open to merging the AI startup with Tesla.Musk expanded his beef with OpenAI to include Microsoft, accusing the two of constituting a monopolyMusk added Microsoft as a defendant in the lawsuit against OpenAI. Getty Images Musk amended the lawsuit against OpenAI in November to include Microsoft as a defendant. He also named Reid Hoffman, who serves as a Microsoft board member and former OpenAI board member, as a defendant.The billionaire called OpenAI's partnership with Microsoft a "de facto merger" and accused the two of anti-competitive practices, such as engaging in "lavish compensation."Musk's lawyers said the two companies "possess a nearly 70% share of the generative AI market.""OpenAI has attempted to starve competitors of AI talent by aggressively recruiting employees with offers of lavish compensation, and is on track to spend $1.5 billion on personnel for just 1,500 employees," lawyers for Musk said in the complaint.Two weeks later, Musk filed a motion asking a judge to prevent OpenAI from dropping its nonprofit status.Elon Musk sued OpenAI in March but dropped the lawsuit in June. Anadolu Musk filed a complaint to Judge Yvonne GonzalezIf granted by the judge, the injunction could cause issues with OpenAI's partnership with Microsoft and prevent it from becoming a for-profit company.As Musk's influence on US policy grows, his feud with Altman hangs in the balance.Donald Trump and Elon Musk grew close during the presidential race. Getty Images As President Donald Trump's self-proclaimed "First Buddy," Musk's power and influence on the US economy is poised to increase even further over the next four years. In addition to being a right-hand-man to Trump, Musk will lead the Department of Government Efficiency, with the goal of slashing federal spending and regulations. Biotech billionaire Vivek Ramaswamy was also set to co-lead DOGE but announced in January that he'll step down from the role and is instead expected to make a run for governor in Ohio.Musk hasn't been quiet about his disdain for Altman postelection. He dubbed the OpenAI cofounder "Swindly Sam" in an X post on November 15.Musk challenges $500B AI infrastructure project, Stargate, led by OpenAIMusk said OpenAI and others involved in Stargate didn't have the funding they needed for the AI infrastructure project. Chesnot/Getty Images A day after Trump's inauguration, the President announced a $500 billion AI infrastrcuture project in the US called Stargate with initial funding coming from OpenAI, Oracle, SoftBank, and United Arab Emirates' MGX. The joint venture does not include Musk's xAI.Musk took to X to challenge the plan and once again criticize his rival. Under OpenAI's X post announcing plans to invest half a trillion dollars over the next four years, Musk wrote, "They don't actually have the money.""SoftBank has well under $10B secured," he said. "I have that on good authority."Altman pushed back, writing that Musk was "wrong" and extended an invite to the "first site already under way.""I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time," Altman wrote in another X post to Musk.
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