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Did Elon Musk Try to Merge OpenAI With Tesla?

By Orgesta Tolaj


6 March 2024

OpenAI vs. Elon Musk

© OpenAI & Tesla

The battle between Elon Musk and OpenAI has taken an unexpected turn. With a recent lawsuit filed by Musk, claiming that he wanted the AI startup to merge with Tesla or have full control, OpenAI has issued an official response to set the record straight. Here is what has been going on between the two leaders.

OpenAI vs. Elon Musk: Who Is at Fault?

OpenAI has responded to Elon Musk’s lawsuit, alleging that Musk wanted the AI startup to merge with Tesla or for him to gain full control. Musk had sued OpenAI, claiming it had deviated from its original mission of building AI for public welfare and become profit-oriented under Microsoft’s influence.

© OpenAI

OpenAI responded to Elon Musk’s allegations regarding a shift to a for-profit structure. They stated that Musk suggested merging with Tesla or gaining full control. Additionally, Musk left OpenAI, expressing the need for a competitor to Google/DeepMind. He implied he would create it himself while indicating support for OpenAI to find its own path.

What Is Going On Between the Two Tech Giants?

In late 2017, OpenAI and Elon Musk decided to transition towards a for-profit entity. Musk was seeking majority equity, initial board control, and the CEO position. However, during discussions, Musk withheld funding, prompting Reid Hoffman to provide financial support. OpenAI declined Musk’s terms, as they believed absolute control by any individual contradicted their mission. Musk then suggested linking OpenAI with Tesla for financial support. Additionally, OpenAI cited an email from Musk highlighting Tesla as the best chance to compete with Google, albeit with slim odds.

OpenAI vs. Elon Musk
© Kathy Hutchins / Vecteezy

What Is Musk Suing OpenAI for?

Elon Musk filed a lawsuit against OpenAI in the San Francisco Superior Court, accusing the AI company of breaching its founding agreement and engaging in unfair business practices. Musk claimed that OpenAI has become a closed-source subsidiary of Microsoft, deviating from its original mission of benefiting humanity by developing artificial general intelligence (AGI). Moreover, Musk alleged that OpenAI is now focused on maximizing profits for Microsoft rather than serving the greater good, and he demanded that OpenAI revert to an open-source platform.

Who are you rooting for in the OpenAI vs. Elon Musk fight?

You might also want to read: Elon Musk Mocks Meta as Facebook & Instagram Go Globally Down

Orgesta Tolaj

Your favorite introvert who is buzzing around the Hive like a busy bee!