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Musk and Altman reignite feud over AI leadership, trading accusations

Fortune AI4h ago
Musk and Altman reignite feud over AI leadership, trading accusations

Key takeaway

Elon Musk and Sam Altman, cofounders of OpenAI who split over its direction, have renewed their public feud as both race to dominate the AI market through competing ventures—Musk's SpaceXAI and Altman's OpenAI. Musk accused Altman of scamming investors and stealing company secrets, while Altman shot back that Musk is misleading investors about space datacenters. Both companies recently entered or filed for public markets, making their competing claims about AI's future directly consequential for their valuations.

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3 Key Points

  • What happened

    Elon Musk accused Sam Altman of being a scammer over the weekend, reviving insults after Apple sued OpenAI for allegedly stealing trade secrets to build hardware. Altman shot back, claiming Musk is selling investors on "short-term space datacenters," while Musk countered that SpaceX will fly orbital data centers next year and repeated claims that Altman stole OpenAI from its nonprofit roots.

  • Why it matters

    The two billionaires are racing to lead the AI revolution—Musk through SpaceX's newly acquired xAI (rebranded SpaceXAI) and Altman through OpenAI. Both companies recently went public or filed to go public, meaning their competing narratives about AI's future directly shape how investors value their visions. The feud, rooted in a 2018 dispute over OpenAI's direction, has now spilled into product launches, with OpenAI releasing GPT-5.6 Sol and SpaceXAI releasing Grok 4.5 within days of each other.

  • What to watch

    A jury dismissed Musk's $150 billion(約24兆円) lawsuit against OpenAI in May for failing to meet the statute of limitations, but Musk has said he will appeal. SpaceX went public in a record-setting IPO in June, the same month OpenAI confidentially filed for its own IPO.

Context & Analysis

The feud between Musk and Altman traces back to OpenAI's founding in 2015 as a nonprofit AI research lab. At the time, Musk and Altman partnered with other cofounders, with Musk pledging roughly $1 billion(約1600億円) in funding over several years. However, when Musk believed OpenAI was falling behind in the AI race, he attempted to take control in 2018—an offer that Altman rejected. Musk subsequently left the board and stopped funding, creating a rift that has defined their relationship for over six years.

After ChatGPT's 2022 release transformed OpenAI into a market leader, the feud escalated to litigation. Musk's 2024 lawsuit claimed Altman had transformed OpenAI into an opaque web of for-profit entities, betraying the original mission. OpenAI countered that Musk only turned hostile after his takeover bid failed. Though a jury dismissed Musk's case in May on statute-of-limitations grounds, the underlying tension persists.

Today, both men are using public platforms to promote their competing AI visions to investors. Musk's SpaceX went public in June with a record-setting IPO partly on the strength of its rebranded SpaceXAI division, which acquired xAI in 2023. OpenAI filed confidentially for its own IPO the same month. The recent tit-for-tat product launches—GPT-5.6 Sol and Grok 4.5 released within days of each other—and public accusations appear designed to sway investor confidence. Musk's appeal of the dismissed lawsuit remains pending, suggesting the legal chapter of the feud is far from closed.

FAQ

What is the original cause of the Musk-Altman feud?
In 2018, Musk proposed taking control of OpenAI and folding it into Tesla after having invested tens of millions of dollars. Altman and other team members rejected the takeover. Musk later alleged that Altman betrayed OpenAI's original nonprofit mission by building a for-profit structure that prioritizes commercial returns.
What legal action has Musk taken against OpenAI?
Musk sued OpenAI and Altman in 2024, seeking $150 billion(約24兆円) in damages for a charitable trust and requesting OpenAI's for-profit structure be reversed. A jury dismissed the suit in May for failing to meet the statute of limitations, but Musk has said he will appeal.
How are Musk and Altman competing in AI right now?
Musk launched xAI in 2023 and released the large language model Grok; SpaceX later acquired xAI and rebranded as SpaceXAI. Altman leads OpenAI, which recently released GPT-5.6 Sol. Both companies recently went public or filed to go public, with SpaceX's IPO occurring in June and OpenAI confidentially filing for its own IPO the same month.

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