Key Takeaways
- Sam Altman and Elon Musk’s relationship began as a collaboration when they co-founded OpenAI in 2015.
- Musk left the OpenAI board in 2018 amid a rift within the company, as OpenAI transitioned to a for-profit model in 2019.
- Their feud intensified in 2023, when Musk launched xAI to challenge OpenAI and tensions peaked in 2025 when Altman led OpenAI into Trump’s $500 billion Stargate AI project.
- Musk’s recent bid of $97.4 billion for OpenAI was rejected by Altman, leading to speculation that the offer was a strategic move to undermine OpenAI’s value.
Elon Musk and Sam Altman are two of the most influential figures in modern technology. Musk is known as the CEO of Tesla, CEO of Space X, head of X (formerly Twitter), founder of Neuralink, the Boring Company, and an emerging political figure. He has shaped industries ranging from electric vehicles to space exploration.
On the other hand, Sam Altman, the driving force behind ChatGPT and OpenAI, played a pivotal role in the AI revolution. Altman is now leading Stargate, a $500 billion infrastructure development project that aims to redefine global connectivity, with a heavy focus on AI infrastructure within the United States.
Although the two visionaries once shared business ambitions, their relationship has devolved into a high-profile rivalry. Musk, a former co-founder of OpenAI, has repeatedly clashed with Altman over the future of artificial intelligence. Their disagreements intensified as they amassed greater influence in AI, space, and digital communication. But how did their relationship evolve from collaboration to fierce competition?
Let’s take a look back with a timeline of the relationship between Elon Musk and Sam Altman, from their early partnership to their ongoing feud.
Timeline of Elon Musk and Sam Altman’s Relationship
From what we know, Elon Musk and Sam Altman met at the beginning of the past decade. Little did they know that the relationship between the two would grow and then slowly fall apart in the years to come.
2012 – The Meeting
Elon Musk and Sam Altman first crossed paths in the early 2010s within the dynamic environment of Silicon Valley. They were introduced by Geoff Ralston, a partner at Y Combinator. At that time, Musk was already famous for Tesla and SpaceX, while Altman had made a name for himself as the president of Y Combinator, a leading startup accelerator.
Their shared passion for technological innovation and the future of artificial intelligence laid the foundation for a collaborative relationship. It wouldn’t be long before the duo became colleagues.
2015 – Musk and Altman Co-Found OpenAI
Elon Musk and Sam Altman were supporters of safe AI development. In 2015, they decided to co-found OpenAI, a non-profit research lab aimed at developing artificial general intelligence (AGI) that would benefit humanity. Musk, concerned about the risks of uncontrolled AI, invested heavily in the initiative, while Altman played a key role in shaping its vision.
Reid Hoffman (venture capitalist) and Peter Thiel (Palantir) were among the investors that injected OpenAI with $1 billion at its inception. Musk and Altman had the capital and the vision and things were off to a great start, so what could go wrong?
2017 – Tension Over OpenAI’s Direction
As OpenAI expanded, tensions began to emerge between Musk and Altman. Musk believed that the company needed massive funding and direct control to compete with tech giants such as Google’s DeepMind. He also suggested merging OpenAI with Tesla to use it as its “cash cow”. Conversely, Altman advocated for a more collaborative and open approach, ensuring that AI development remained democratic. This clash of business ideologies would sow the seeds of a long-lasting chasm between the two.
2018 – Elon Musk Leaves OpenAI
By 2018, Musk formally resigned from OpenAI’s board, citing conflicts of interest with Tesla’s own AI developments. He also voiced concerns that OpenAI was falling behind corporate-backed AI initiatives. Altman assumed the role of OpenAI CEO and led the organization toward a more independent direction, setting the stage for their professional split.
2019 – OpenAI Transitions to a “For-Profit” Model
Under Altman’s leadership, OpenAI transitioned from a non-profit to a “capped profit” entity, allowing it to attract investors while still upholding its ethical AI commitments. As expected, Musk was critical of this shift, and publicly stated that OpenAI was straying from its original mission. As a result, this marked the first major public dispute between the two former allies.
2020 – The Rise of GPT-3 and Musk’s Criticism
The release of OpenAI’s GPT-3 in 2020 was an inflection point in global technology. It made an advanced LLM tool available to the public for the first time and demonstrated its vast potential to automate tasks.
Musk, however, openly criticized OpenAI for monetizing the technology and limiting public access. His concerns grew as OpenAI formed partnerships with Microsoft, which granted exclusive rights to GPT-3’s underlying model. It wasn’t long before OpenAI decided to officially launch GPT-3l to the public in 2021.
2023 – ChatGPT Dominates the AI Market, Musk Launches xAI
The release of GPT-3 to the public marked a pivotal moment in the development of AI models. By 2023, ChatGPT had over 200 million users worldwide, becoming the most widely used AI chatbot. OpenAI’s valuation soared, securing multi-billion-dollar investments from partners like Microsoft.
OpenAI’s share grew significantly and in response Musk founded xAI, a company dedicated to developing ethical AI alternatives. He positioned xAI as an open-source alternative, promising a transparent and decentralized AI ecosystem.
This move cemented his rivalry with Altman, who continued expanding OpenAI’s reach with products like ChatGPT and DALL·E. At the same time, Musk ramped up efforts to develop Grok, xAI’s answer to ChatGPT, which was integrated into X.
2024 – The Altman-Musk Feud Goes Public
Tensions between Musk and Altman boiled over in 2024, as Musk accused OpenAI of prioritizing profits over ethical AI development. He claimed that OpenAI had become a tool for major corporations, betraying its original vision. Altman dismissed Musk’s criticisms, calling them hypocritical, given Musk’s aggressive business tactics.
January 2025 – OpenAI and the Stargate Project
In January 2025, President Donald Trump announced the Stargate Project, an ambitious initiative aiming to invest up to $500 billion in artificial intelligence infrastructure (such as data centers) across the United States by 2029. The project is a joint venture involving OpenAI, SoftBank, Oracle, and MGX, with OpenAI’s CEO Sam Altman playing a pivotal role.
Elon Musk expressed skepticism about the project’s financial backing. He publicly questioned the availability of the promised funds, stating, “They don’t actually have the money”. President Trump downplayed the tension, suggesting that Musk’s objections were personal rather than substantive.
February 2025 – Musk Reportedly Bids $97.4 Billion for OpenAI
In early 2025, reports surfaced that Musk had made a $97.4 billion bid to acquire OpenAI. Although unlikely to succeed, many saw this as a strategic move to devalue OpenAI while boosting xAI’s market position. Altman quickly rejected the offer, stating that OpenAI’s mission was incompatible with Musk’s approach.
At the same time, Sam Altman offered to purchase the X social platform for $9.7 billion. For reference, Musk purchased X for $44 billion in April 2022. Altman’s comment was most likely a play on the devaluation of X since Musk bought it.
Is Elon Musk Buying OpenAI?
Elon Musk’s rumored bid for OpenAI has fueled speculation about his intentions. Some believe the bid was a calculated strategy to undermine OpenAI’s credibility rather than a genuine acquisition attempt.
In a world where he’s successful, Musk would gain control over the world’s most advanced AI models, reshaping the competitive landscape. However, OpenAI’s leadership remains firm in rejecting Musk’s involvement, maintaining its current partnerships with Microsoft and other investors.
Why Is OpenAI Becoming “For Profit”?
One of the key reasons behind OpenAI’s transition to a for-profit model was the need for sustainable funding. Developing AI models like ChatGPT-5 and DALL·E requires immense computational resources. To remain competitive, OpenAI sought financial backing from corporations while maintaining a “capped-profit” structure to prevent unchecked commercialization.
Despite its profit-driven approach, OpenAI continues to position itself as a responsible AI developer. At the same time, critics (including Musk) argue that corporate funding influences OpenAI’s priorities, shifting its mission away from the greater good.
Finally, the recent release of DeepSeek for just a fraction of the cost raised questions about the evaluation of AI companies.
Why Did Elon Musk and Sam Altman Fall Out?
The feud between Elon Musk and Sam Altman stems from fundamental disagreements about the future of artificial intelligence:
- Control vs. Collaboration: Musk wanted OpenAI to be centralized under his leadership, while Altman preferred a collaborative approach.
- Ethical AI vs. Market Growth: Musk criticized OpenAI’s partnership with Microsoft, arguing it prioritized profits over ethical AI.
- Competing Visions: Musk’s xAI and OpenAI have directly competing AI models, escalating their rivalry.
With Musk and Altman continuing to shape the AI landscape, their ideological divide keeps widening, making reconciliation highly unlikely.
Closing Thoughts
The Musk Altman feud has become one of the most notorious rivalries in business. What started as a shared vision for safe AI development evolved into a battle for dominance in artificial intelligence. While OpenAI continues to push AI toward mass adoption, Musk’s xAI and Grok remain a formidable challenger. Whether Musk’s latest bid for OpenAI is a power play or a genuine takeover attempt, one thing is clear, this rivalry is far from over.
