Tesla Inc. CEO Elon Musk earlier this week leveled allegations against OpenAI CEO Sam Altman, accusing him of misleading statements about a $10 billion equity agreement.
What Happened: Musk on Thursday took to his social media platform, X to express his disappointment with Altman. The tech mogul, sharing a Reuters report from September 2024, said, “Altman literally testified to Congress that he wouldn’t get OpenAI compensation, and now he wants $10 billion! What a liar.”
OpenAI, initially a non-profit organization, is now transitioning to a for-profit model. This shift will see Altman receiving equity in the company, potentially valued at up to $150 billion. Musk’s criticism stems from Altman’s previous assurance that he would not seek financial gain from OpenAI.
OpenAI did not immediately respond to Benzinga’s request for comment.
For unversed, during his testimony before the U.S. Senate Judiciary Subcommittee on Privacy, Technology, and the Law in 2023, the CEO said that he receives minimal compensation from OpenAI, sufficient only to qualify for health insurance, and holds no equity in the company. He emphasized that his motivation for leading OpenAI is driven by passion rather than financial gain.
Why It Matters: This is not the first time Musk has criticized Altman over OpenAI’s shift to a for-profit model. In December 2024, Musk labeled the transformation a “total scam” and accused the organization of deviating from its original mission.
In a December 2024 interview, Altman referred to Musk as a “legendary entrepreneur” but also a “bully.” He noted that Musk would likely be content with OpenAI’s progress if he was at the helm. However, despite their strained relationship, Altman acknowledged Musk’s crucial role in OpenAI’s early funding.
Musk co-founded OpenAI in 2015 and left the AI startup in 2018. Since then, he has criticized and sued OpenAI, accusing it of deception and using him for competitive advantage.
Altman’s stance on political figures has also seen a shift. Earlier this week, Altman publicly expressed his support for President Donald Trump, a shift in his perspective that he attributed to observing the president more closely. Earlier this week, Project Stargate was unveiled as a groundbreaking $500 billion AI infrastructure initiative backed by OpenAI, SoftBank Group SFTBY, and Oracle Corp. ORCL. The project, unveiled by Trump, is designed to position the United States at the forefront of global AI innovation and leadership.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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