AI Wars: Sam Altman Calls Elon Musk ‘Insecure’ Amid Takeover Tensions

The ongoing rivalry between OpenAI founder Sam Altman and Tesla CEO Elon Musk has taken a new turn after Musk proposed a takeover of OpenAI.

Speaking at the AI summit in Paris, Altman dismissed Musk’s offer and accused him of acting out of insecurity.

Altman stated that rather than resorting to extreme tactics, Musk should focus on creating a superior AI product.

“Probably his whole life is from a position of insecurity. I feel for the guy. I don’t think he’s a happy person,” Altman remarked.

He went on to emphasize that OpenAI is “not for sale” and called Musk’s actions an attempt to disrupt the ChatGPT maker.

“I think he is probably just trying to slow us down. He is obviously a competitor. I wish he would just compete by building a better product, but I think there’s been a lot of tactics, many, many lawsuits, all sorts of other crazy stuff, now this,” Bloomberg quoted Altman as saying.

Musk’s $97.4 Billion Offer and OpenAI’s Response

A group of investors, led by Musk, recently made an unsolicited $97.4 billion bid to acquire OpenAI, intending to return it to its original nonprofit structure.

Altman swiftly rejected the proposal, responding sarcastically on X (formerly Twitter), “No thank you, but we will buy Twitter for $9.74 billion if you want.”

Despite Musk’s public offer, OpenAI’s board has not received any formal proposal from Musk’s investor group. In an internal message to OpenAI employees, Altman reassured that even if a formal bid were submitted, he would reject it to protect OpenAI’s mission.

A Long-Standing Feud Between Musk and Altman

The dispute between Musk and Altman dates back years. They co-founded OpenAI in 2015 as a nonprofit AI research lab, but Musk left the board in 2018.

Initially, OpenAI cited conflicts of interest with Tesla’s AI research as the reason for Musk’s departure.

However, legal documents later revealed that Musk had attempted to take control of OpenAI, either by becoming its CEO or merging it with Tesla. When his proposals were rejected, he walked away.

After OpenAI launched ChatGPT in 2022 and gained massive success, Musk became increasingly critical of the company.

He accused OpenAI of abandoning its nonprofit mission and keeping its AI technology proprietary. His dissatisfaction led to legal action.

Musk’s Legal Battles Against OpenAI

Musk escalated his grievances in 2024 by suing OpenAI and its key investor, Microsoft. He alleged that OpenAI had shifted its focus from public benefit to profit-making.

Later, he revised the lawsuit to challenge OpenAI’s transition into a for-profit structure.

Altman, however, believes this structural change is necessary for OpenAI’s survival and growth. Operating AI models is highly expensive, and attracting investors is crucial to sustaining the company.

Regulators are currently evaluating how OpenAI’s nonprofit arm will be integrated into this new model.

Is This Feud Personal?

Beyond business, the dispute seems to have a personal element. In a Bloomberg TV interview, Altman suggested that Musk regrets leaving OpenAI, especially since his own AI company, xAI, has struggled to compete despite heavy investment.

Musk launched GrokAI as a direct competitor to ChatGPT, branding it as “anti-woke” and less restricted. Unlike ChatGPT, GrokAI allows users to generate images of public figures.

However, despite these differences, GrokAI has not matched ChatGPT in popularity or accuracy, which might explain Musk’s continued attacks on OpenAI.

“He’s just trying to slow us down. He obviously is a competitor,” Altman reiterated. “I wish he would just compete by building a better product.”

Musk’s Social Media Attacks on Altman

The public rivalry between the two tech billionaires has spilled onto social media. Musk took to X to call Altman a “swindler” and a “scammer.”

In an interview with Tucker Carlson, Musk claimed that Altman was untrustworthy and should not be in control of one of the most powerful AI technologies.

Altman, however, has refrained from engaging in direct attacks on Musk online.

Instead, he has subtly criticized Musk’s motivations, stating, “Probably his whole life is from a position of insecurity. I don’t think he’s a happy person. I do feel for him.”

OpenAI’s Future Amid the Takeover Drama

Despite Musk’s aggressive approach, OpenAI remains focused on its growth. Currently, the company is in the middle of a major fundraising initiative, aiming for a post-money valuation of $300 billion.

In October 2023, OpenAI was valued at $157 billion, highlighting its rapid ascent in the AI industry.

Additionally, OpenAI recently restructured its board, bringing in figures like former Treasury Secretary Larry Summers and investment banker Adebayo Ogunlesi.

This overhaul followed internal disputes that previously led to Altman’s temporary removal and reinstatement as CEO.

Will Musk’s Bid Succeed?

Although Musk’s attorney has confirmed that the bid is backed by his AI firm xAI and investors such as Valor Equity Partners, Baron Capital, and Joe Lonsdale’s 8VC, it remains unclear whether OpenAI’s board will entertain any formal offer.

For now, OpenAI continues its mission as an independent entity, while Musk’s legal and corporate maneuvers suggest that this battle is far from over.

The AI industry watches closely as these two tech giants continue their intense rivalry.