For instance, Musk tried to block OpenAI from pivoting to a for-profit firm back when he was part of the board, suggesting a merger with Tesla who could fund the company's research. When the proposal didn't go through, he left, but the story didn't end there. Last year, the Tesla and xAI boss filed a lawsuit against OpenAI , citing his disdain for Altman and Brockman (another co-founder), saying they had "abandoned OpenAI’s founding mission," but there wasn't much legal ground to stand over, and it was later withdrawn.
In recent years, OpenAI has become the poster boy for the front-end of artificial intelligence, much like how Nvidia has for the back end . It wouldn't be an overstatement to say that ChatGPT ushered in one of the biggest technological revolutions of our lifetimes, sending many big players into a frenzy over how to compete. Companies like Google , who'd been previously known for AI or machine learning, were famously hesitant to deploy models to the public, but OpenAI changed that rhetoric almost overnight.
Elon Musk's xAI, the firm behind the controversial chatbot Grok that you find explaining basic concepts on X, has emerged as a key proponent in this race. Musk is building large data centers , buying up lots of AI GPUs , and planning to create his own in the future, all in a bid to compete with OpenAI (and others). There's a subtle irony in criticizing your peer for doing the exact same thing you're doing, but Musk would argue that there's a difference of intent.
OpenAI was founded to achieve AGI for the benefit of humanity, and it was turned into a profit-first company later on. OpenAI Foundation, the non-profit, still governs its commercial arm, but relies on its money to operate. It's a hybrid model that was recently lent clarification when Microsoft and OpenAI agreed to recapitalize the company, making it easier to secure funds and work more autonomously. Musk's statement, "you stole a non-profit" explicitly refers to that, contending that Altman has taken over OpenAI's original mission statement.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/elon-musk-alleges-sam-altman-stole-a-non-profit-as-ai-bros-spat-over-cancelled-tesla-roadster-order#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.