After three years, Elon Musk was ready to give up on the artificial intelligence research firm he helped found, OpenAI.
The nonprofit had launched in 2015 to great fanfare with backing from billionaire tech luminaries like Musk and Reid Hoffman, who had as a group pledged $1 billion. It had lured some of the top minds in the field to leave big tech companies and academia.
But in early 2018, Musk told Sam Altman, another OpenAI founder, that he believed the venture had fallen fatally behind Google, people familiar with the matter said.
And Musk proposed a possible solution: He would take control of OpenAI and run it himself.
Altman and OpenAI’s other founders rejected Musk’s proposal. Musk, in turn, walked away from the company — and reneged on a massive planned donation. The fallout from that conflict, culminating in the announcement of Musk’s departure on Feb 20, 2018, would shape the industry that’s changing the world, and the company at the heart of it.Over the years, tensions between Musk and OpenAI have reached new heights, leading to public disputes, leaked emails, and heated exchanges that have captured the attention of both the AI community and the broader public. This article explores the key events that led to the rising tensions between Musk and OpenAI, shedding light on the dynamic between these two powerful figures.
In December 2015, a group of tech leaders, including Elon Musk and Sam Altman, came together to create OpenAI, a non-profit organization with the ambitious goal of developing artificial general intelligence (AGI) in a way that benefits all of humanity. The vision was to ensure that AI development would be driven by ethical considerations, making it accessible to the greater good, rather than concentrated in the hands of a few large corporations.
Musk was initially a significant driving force behind OpenAI, contributing both his resources and ideas to the organization. At the time, the idea of creating AGI for the benefit of humanity seemed like a common cause that would unite Musk and Altman. However, it would not be long before their perspectives began to diverge.
In May 2016, Sam Altman reached out to Elon Musk through email, sharing concerns about the global halt of AI development. Altman expressed his doubts about whether it was even possible to pause AI research worldwide. He also suggested that if AI development were inevitable, it might be preferable for companies other than Google to take the lead. This email is seen as one of the early signs of differing viewpoints between the two co-founders.
Musk, ever the skeptic about the rapid development of AI, continued to express concerns about the potential dangers of AGI. He was a vocal advocate for regulating AI development before it became too powerful and uncontrollable. In contrast, Altman, though also cautious, seemed to have a more optimistic view of AI's future, focusing on how OpenAI could guide the development process responsibly.
The most significant shift in the organization’s trajectory came in 2017 when OpenAI made the controversial decision to transition from a non-profit model to a "capped-profit" model. This move would allow OpenAI to attract investment to scale up its efforts, but it also marked a turning point in its relationship with Musk.
Musk, who had supported the idea of a non-profit organization in the beginning, began to grow increasingly uncomfortable with the new direction. While Altman and others saw the move as a practical necessity for OpenAI’s long-term sustainability, Musk felt it contradicted the very principles he had once espoused. His growing frustration with the company’s shift towards a more corporate structure signaled a deeper rift between him and Altman.
By 2018, Musk became increasingly vocal about his concerns regarding AI, not just in the context of OpenAI, but across the tech industry as a whole. He continued to warn of the dangers of AGI, famously describing AI as “the biggest risk we face as a civilization.” Musk's comments led to him distancing himself from OpenAI, despite having played a foundational role in its creation.
Around the same time, Musk also began expressing his discontent with OpenAI’s focus on scaling up and commercializing its research. He publicly criticized the organization for accepting large funding from companies like Microsoft, questioning whether the pursuit of profit was truly aligned with OpenAI’s original mission to democratize AI for the benefit of all.
Meanwhile, Sam Altman and OpenAI were focused on advancing their AI technologies, including GPT models, and making strategic partnerships with key players in the tech industry. Altman’s leadership and OpenAI’s success in attracting massive investments put them at odds with Musk’s more cautionary approach.
As OpenAI’s technology continued to evolve, particularly with the release of models like GPT-3, Musk’s frustrations with the organization seemed to intensify. In 2021, OpenAI’s success, particularly with the launch of ChatGPT, drew both praise and criticism. Musk publicly criticized the organization’s approach, even though he had initially been a supporter.
Musk’s critical stance toward OpenAI’s direction reached a new high as he began to accuse the company of not living up to its original mission. He voiced concerns about the potential dangers of AI becoming too powerful and falling into the wrong hands, particularly when it was in the hands of large corporations. Musk's message became clearer: he wanted OpenAI to return to its non-profit roots and stay true to its commitment to ethical AI development.
By 2023, the tension between Elon Musk and OpenAI had reached a boiling point. As OpenAI continued to grow in influence and popularity, particularly with the rise of GPT-4 and other breakthrough technologies, Musk began to intensify his public remarks about the company.
Musk’s growing frustration with OpenAI culminated in a leaked email that revealed his concerns about the organization’s increasing ties with corporate interests. In the email, Musk made it clear that he felt OpenAI had deviated from its original mission and had become too closely aligned with major tech companies. Musk’s critique of OpenAI was not only based on ideological differences but also on the financial and business structure of the organization.
The leaked email stirred further speculation about Musk’s future relationship with OpenAI and whether he would take more drastic steps to challenge the company’s direction.
On March 9, 2023, Elon formed xAI—a public benefit corporation which is a direct competitor to OpenAI.
On March 22, 2023, Elon co-signed an open letter(opens in a new window) calling for a pause in training systems more powerful than GPT-4. Since only OpenAI had a GPT-4-level system at that time, this was a call for only OpenAI to stop development.
In 2024, the fallout between Musk and OpenAI reached new heights, with Musk publicly stating that he was exploring the creation of a new AI organization that would be dedicated to ethical AI development. This move was seen by many as a direct challenge to OpenAI, and Musk’s frustrations with the organization were laid bare for the public to see.
While Musk’s plans for a new AI company remain in the early stages, the rising tensions between him and Altman have sparked widespread discussions in the tech community about the future of AI and its ethical implications. Musk’s growing influence in AI, combined with Altman’s leadership at OpenAI, promises that the debate over the future of AGI will only intensify in the coming years.
The legal disputes between Elon Musk and OpenAI, particularly involving CEO Sam Altman, have intensified throughout 2024, highlighting significant tensions over the organization's mission and direction. Here's an in-depth look at the key events and developments during this period:
On February 29, 2024, Elon Musk filed a lawsuit against OpenAI, CEO Sam Altman, and President Greg Brockman. The lawsuit alleged that OpenAI had deviated from its original mission of prioritizing AI safety and public benefit, accusing the organization of focusing on profit over its foundational goals.
In response to Musk's allegations, OpenAI issued a statement describing the claims as "incoherent" and "frivolous." The organization emphasized its commitment to its mission and the responsible development of AI technologies.
Musk's legal team successfully petitioned for the removal of the presiding judge in the case, citing concerns about impartiality. This move was part of the ongoing legal maneuvers as the dispute progressed.
On June 11, 2024, Elon Musk unexpectedly withdrew his lawsuit against OpenAI and Sam Altman. However, the legal battle was reignited on August 5, 2024, when Musk revived the lawsuit, later adding Microsoft as a defendant. The amended complaint alleged that OpenAI's shift towards a for-profit model and its close ties with Microsoft contradicted its original mission.
In December 2024, Geoffrey Hinton, often referred to as the "godfather" of AI," expressed support for Musk's legal efforts against OpenAI. Hinton criticized OpenAI for abandoning its original commitment to public safety and leveraging nonprofit benefits, arguing that its switch to a for-profit model sets a negative precedent.
Update March 11, 2024: We are seeking to have the lawsuit assigned to dedicated case management, since it involves AI technology and the claims span almost a decade.
As of January 2025, the legal battle between Elon Musk and OpenAI continues, with court hearings scheduled to address the allegations and the future direction of OpenAI. The outcome of this dispute could have significant implications for the AI industry and the balance between profit motives and public benefit in AI development.
These developments underscore the complex and evolving relationship between Elon Musk, Sam Altman, and OpenAI, reflecting broader debates within the tech industry about the ethical and societal responsibilities of AI organizations.
The relationship between Elon Musk and Sam Altman has been marked by periods of collaboration, ideological differences, and increasing tension. What began as a shared vision to develop AI for the benefit of humanity has now evolved into a highly publicized rift, with both figures taking different paths on the development and ethical direction of AI. As the world watches closely, it remains to be seen how this conflict will ultimately shape the future of artificial intelligence, and whether Musk’s new plans will challenge OpenAI’s dominance in the field.
Their ongoing disagreement highlights the broader conversation about the role of corporate interests in AI development, the ethical implications of AGI, and the responsibility of tech leaders to ensure that these technologies are used for the greater good.