Zinger Key Points
- Sam Altman's OpenAI is exploring founding a new social media competitor to Elon Musk's X.
- Altman and Musk have feuded for several years over OpenAI's for-profit status.
- China’s new tariffs just reignited the same market patterns that led to triple- and quadruple-digit wins for Matt Maley. Get the next trade alert free.
OpenAI CEO Sam Altman and Elon Musk, CEO of Tesla and owner of X, have feuded for several years after Musk left OpenAI’s board in 2018, the company he co-founded. Several lawsuits later, the San Francisco-based AI start-up is exploring creating a social media competitor to Musk’s X.
What Happened: OpenAI’s social media project is in its early stages, according to a CNBC report citing anonymous sources. Further information about OpenAI’s plans is unknown.
The AI company’s addition of photo-generation tools to ChatGPT became popular on X in early April, with users creating images in the style of Japanese anime films.
Altman is an active user on Musk’s platform and has both criticized and praised Musk in recent months in frequent back-and-forths with the SpaceX founder. The two tech entrepreneurs’ disagreements lie primarily with OpenAI’s conversion from a non-profit to a for-profit company. Musk’s xAI, founded in 2023, is a direct competitor to OpenAI.
Why it Matters: X, formerly Twitter before Musk’s acquisition, has faced a surge in competitors in recent years as Musk’s polarizing political stances alienated many users. Competing platforms include Meta Platforms Inc‘s Threads, Bluesky and Mastodon. Still, X remains the most popular among text-based social media platforms.
Musk, a very active user on X, did not react to the rumors on Tuesday.
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