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

USD -
AED 3.673025
AFN 69.49161
ALL 84.204905
AMD 384.02998
ANG 1.789699
AOA 917.000315
ARS 1339.238498
AUD 1.541185
AWG 1.8025
AZN 1.763599
BAM 1.694735
BBD 2.019765
BDT 121.944985
BGN 1.689295
BHD 0.37698
BIF 2948.5
BMD 1
BND 1.289107
BOB 6.912269
BRL 5.502975
BSD 1.000308
BTN 87.75145
BWP 13.585141
BYN 3.287192
BYR 19600
BZD 2.009393
CAD 1.37705
CDF 2889.9999
CHF 0.80672
CLF 0.024629
CLP 966.169922
CNY 7.1841
CNH 7.193565
COP 4090.5
CRC 505.435183
CUC 1
CUP 26.5
CVE 95.624959
CZK 21.234199
DJF 177.720114
DKK 6.44258
DOP 60.825032
DZD 130.3459
EGP 48.420105
ERN 15
ETB 138.650224
EUR 0.86337
FJD 2.26045
FKP 0.752485
GBP 0.751501
GEL 2.705228
GGP 0.752485
GHS 10.549812
GIP 0.752485
GMD 72.445873
GNF 8675.000167
GTQ 7.674744
GYD 209.292653
HKD 7.849955
HNL 26.349894
HRK 6.505797
HTG 131.268711
HUF 343.626499
IDR 16360.4
ILS 3.446685
IMP 0.752485
INR 87.705974
IQD 1310
IRR 42124.999608
ISK 123.319845
JEP 0.752485
JMD 160.063082
JOD 0.709001
JPY 147.382502
KES 129.500947
KGS 87.449853
KHR 4010.000041
KMF 425.500839
KPW 900.023324
KRW 1389.440134
KWD 0.30565
KYD 0.833601
KZT 537.911971
LAK 21599.999839
LBP 89550.000009
LKR 300.828824
LRD 201.00009
LSL 17.916238
LTL 2.95274
LVL 0.60489
LYD 5.434986
MAD 9.08875
MDL 17.030753
MGA 4435.000182
MKD 53.156333
MMK 2098.973477
MNT 3592.605619
MOP 8.088525
MRU 39.901832
MUR 45.630274
MVR 15.397068
MWK 1736.503563
MXN 18.721397
MYR 4.227499
MZN 63.95966
NAD 17.89956
NGN 1528.250481
NIO 36.750129
NOK 10.246735
NPR 140.403537
NZD 1.689205
OMR 0.384506
PAB 1.000321
PEN 3.555034
PGK 4.135502
PHP 57.498499
PKR 282.549976
PLN 3.696587
PYG 7492.775412
QAR 3.640499
RON 4.382901
RSD 101.170981
RUB 80.000345
RWF 1441.5
SAR 3.75217
SBD 8.244163
SCR 14.729442
SDG 600.509569
SEK 9.665502
SGD 1.287065
SHP 0.785843
SLE 23.101869
SLL 20969.503947
SOS 571.501579
SRD 36.969504
STD 20697.981008
STN 21.485
SVC 8.752692
SYP 13002.222445
SZL 17.89012
THB 32.360085
TJS 9.41336
TMT 3.51
TND 2.899009
TOP 2.342101
TRY 40.6889
TTD 6.787371
TWD 29.988499
TZS 2469.999853
UAH 41.705046
UGX 3580.449636
UYU 40.154413
UZS 12624.999577
VES 126.950815
VND 26245
VUV 119.406554
WST 2.772467
XAF 568.405501
XAG 0.0264
XAU 0.000296
XCD 2.70255
XCG 1.80286
XDR 0.704914
XOF 567.499511
XPF 103.424984
YER 240.35018
ZAR 17.858051
ZMK 9001.198078
ZMW 23.033097
ZWL 321.999592
  • SCU

    0.0000

    12.72

    0%

  • RYCEF

    -0.1700

    14.33

    -1.19%

  • RBGPF

    -0.0200

    74.92

    -0.03%

  • BTI

    0.2900

    55.84

    +0.52%

  • GSK

    -0.3600

    37.32

    -0.96%

  • CMSC

    0.0000

    23.07

    0%

  • RIO

    -0.3000

    59.7

    -0.5%

  • CMSD

    -0.1200

    23.51

    -0.51%

  • NGG

    -0.3700

    72.28

    -0.51%

  • SCS

    -0.6200

    15.96

    -3.88%

  • RELX

    -1.3800

    50.59

    -2.73%

  • VOD

    0.0600

    11.1

    +0.54%

  • BCC

    4.0600

    86.77

    +4.68%

  • JRI

    0.0600

    13.26

    +0.45%

  • AZN

    -0.1100

    74.48

    -0.15%

  • BP

    1.1100

    33.6

    +3.3%

  • BCE

    0.2500

    23.56

    +1.06%

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.

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