The China Mail - AI feud: How Musk and Altman's partnership turned toxic

USD -
AED 3.67302
AFN 71.536303
ALL 90.405912
AMD 389.77481
ANG 1.790208
AOA 916.000215
ARS 1075.195997
AUD 1.650451
AWG 1.8025
AZN 1.701353
BAM 1.787694
BBD 2.01692
BDT 121.35421
BGN 1.78943
BHD 0.376878
BIF 2969.307768
BMD 1
BND 1.349349
BOB 6.902572
BRL 5.864301
BSD 0.998862
BTN 86.097134
BWP 14.0993
BYN 3.269024
BYR 19600
BZD 2.006481
CAD 1.41663
CDF 2871.000113
CHF 0.853705
CLF 0.025679
CLP 985.179964
CNY 7.308597
CNH 7.35606
COP 4392.25
CRC 512.832233
CUC 1
CUP 26.5
CVE 100.785609
CZK 22.955301
DJF 177.879144
DKK 6.81729
DOP 62.655095
DZD 133.824968
EGP 51.246803
ERN 15
ETB 131.715138
EUR 0.913235
FJD 2.329971
FKP 0.785678
GBP 0.78207
GEL 2.750262
GGP 0.785678
GHS 15.497748
GIP 0.785678
GMD 72.17057
GNF 8663.804194
GTQ 7.715806
GYD 209.409415
HKD 7.76796
HNL 25.628127
HRK 6.888099
HTG 131.583485
HUF 373.917226
IDR 16852.692308
ILS 3.75926
IMP 0.785678
INR 85.932969
IQD 1312.060987
IRR 42111.979176
ISK 132.744003
JEP 0.785678
JMD 157.736833
JOD 0.709007
JPY 146.708965
KES 129.511174
KGS 86.805951
KHR 4005.661669
KMF 450.692198
KPW 899.976479
KRW 1470.494017
KWD 0.307863
KYD 0.829268
KZT 521.040525
LAK 21690.770454
LBP 89906.628583
LKR 296.695051
LRD 200.280625
LSL 19.577283
LTL 2.95274
LVL 0.60489
LYD 4.934084
MAD 9.561565
MDL 17.754528
MGA 4633.203922
MKD 56.254848
MMK 2099.38476
MNT 3509.76811
MOP 8.002611
MRU 39.949261
MUR 45.080826
MVR 15.445222
MWK 1736.03677
MXN 20.52737
MYR 4.478796
MZN 63.817034
NAD 19.577283
NGN 1576.150318
NIO 36.838353
NOK 10.91382
NPR 137.557201
NZD 1.783883
OMR 0.384984
PAB 1
PEN 3.681492
PGK 4.055324
PHP 57.330483
PKR 280.729906
PLN 3.930989
PYG 8022.7182
QAR 3.640269
RON 4.560348
RSD 107.305119
RUB 86.162468
RWF 1430.455354
SAR 3.750049
SBD 8.500642
SCR 14.575794
SDG 600.12631
SEK 10.025175
SGD 1.35208
SHP 0.785843
SLE 22.749797
SLL 20969.501083
SOS 574.116425
SRD 36.572442
STD 20697.981008
SVC 8.749944
SYP 13001.558046
SZL 19.577283
THB 34.746653
TJS 10.871664
TMT 3.498288
TND 3.080342
TOP 2.406281
TRY 38.009625
TTD 6.783843
TWD 33.03309
TZS 2681.884327
UAH 41.206967
UGX 3696.64109
UYU 42.556096
UZS 12996.655465
VES 72.084089
VND 25793.538418
VUV 125.059451
WST 2.843211
XAF 600.922931
XAG 0.032875
XAU 0.000331
XCD 2.706586
XDR 0.749413
XOF 600.922931
XPF 109.319941
YER 245.795492
ZAR 19.343225
ZMK 9001.205638
ZMW 27.939123
ZWL 321.999592
  • RBGPF

    -7.7300

    60.27

    -12.83%

  • RYCEF

    0.4700

    8.7

    +5.4%

  • CMSC

    0.1200

    22.29

    +0.54%

  • GSK

    -0.2550

    34.585

    -0.74%

  • BCC

    1.5000

    93.39

    +1.61%

  • SCS

    0.0000

    10.2

    0%

  • NGG

    1.1300

    64.03

    +1.76%

  • AZN

    0.6200

    66.41

    +0.93%

  • RIO

    -0.5800

    53.98

    -1.07%

  • JRI

    0.3700

    11.63

    +3.18%

  • CMSD

    0.0700

    22.55

    +0.31%

  • RELX

    0.9300

    46.46

    +2%

  • VOD

    0.0250

    8.375

    +0.3%

  • BCE

    -0.6100

    21.47

    -2.84%

  • BTI

    0.9850

    40.415

    +2.44%

  • BP

    0.0450

    27.215

    +0.17%

AI feud: How Musk and Altman's partnership turned toxic
AI feud: How Musk and Altman's partnership turned toxic / Photo: © AFP/File

AI feud: How Musk and Altman's partnership turned toxic

The feud between Elon Musk and Sam Altman has become one of the bitterest rivalries in business history, with the Tesla tycoon bidding to buy Altman's OpenAI in an apparent attempt to derail the ChatGPT maker's ascent to becoming one of the world's most important companies.

Advertisement Image

Text size:

- What sparked the rivalry? -

Musk and Altman were among the 11-person team that founded OpenAI in 2015. Created as a counterweight to Google's dominance in artificial intelligence, the project got its initial funding from Musk, who invested $45 million to get it started.

Three years later, Musk departed OpenAI. The company initially cited "a potential future conflict for Elon...as Tesla continues to become more focused on AI," noting the electric vehicle company's ambitions in autonomous driving.

However, subsequent lawsuits revealed a more contentious story: OpenAI claimed Musk left after his attempts to become CEO or to merge the company with Tesla were rejected.

The situation remained relatively quiet until November 2022, when OpenAI's release of ChatGPT created a global technology sensation -- one that didn't feature Musk at its center and which made Altman a star.

Musk quickly began criticizing the company, trolling it on social media for keeping its source code private and signing a widely publicized manifesto calling for a pause in AI development, even as he pursued his own AI projects.

The conflict escalated in August 2024 when Musk refiled a lawsuit against OpenAI and its backer Microsoft, claiming the ChatGPT maker had betrayed its founding mission of benefiting the public good in favor of pursuing profits.

Musk later updated the lawsuit to prevent OpenAI's conversion to a for-profit company -- a change Altman considers crucial for the company's development.

- Buy OpenAI? -

OpenAI's unusual structure -- a non-profit with a money-making subsidiary -- reflected its idealistic origins as a counter to Google.

However, the massive costs of designing, training, and deploying AI models have forced the company to seek a new corporate structure that would give investors equity and provide more stable governance.

This need for stability became particularly evident after a 2023 boardroom coup briefly saw Altman fired, only to be reinstated days later following Microsoft's intervention.

The transition to a traditional for-profit company requires approval from California and Delaware authorities, who will scrutinize how the non-profit arm of OpenAI is valued when it becomes a shareholder in the new company.

Current investors prefer a lower valuation to maximize their share of the new company.

Musk's bid, valuing the OpenAI non-profit at $97.4 billion -- approximately $30 billion above current negotiations according to The Information -- appears designed to disrupt the company's fundraising efforts.

"Overall this is Musk's attempt to hurt OpenAI's conversion into a non-profit to slow them down. I doubt Musk’s business rationale for the bid will play out in his favor," said Lutz Finger , visiting senior lecturer at Cornell University.

- Trump attention? -

Musk's latest move to undermine his former ally came shortly after Altman made an appearance at the White House, announcing his involvement in Stargate, a Donald Trump-sponsored AI infrastructure project partnering with Japan's SoftBank.

Musk, who plays a central role in the Trump White House, immediately criticized the $500 billion AI project claiming the funding wasn't secured in an apparent dissension with the president.

Facing the barrage of hostility from the Tesla billionaire, Altman has increasingly suggested that Musk's actions stem from regret over leaving OpenAI in 2018, particularly as Musk's competing venture, xAI, struggles to gain traction despite massive investments.

"He's just trying to slow us down. He obviously is a competitor," Altman told Bloomberg TV.

"I wish he would just compete by building a better product.... Probably his whole life is from a position of insecurity. I don't think he's a happy person. I do feel for him."

E.Choi--ThChM

Advertisement Image