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OpenAI Reveals Musk's $100M For-Profit Push Amidst $50B xAI Rivalry

Dec 13, 2024, 07:38 PM

OpenAI has released a series of internal emails and messages in response to a lawsuit filed by Elon Musk, one of its co-founders. The documents indicate that Musk initially supported a for-profit structure for OpenAI as early as 2017, seeking to invest $100 million and aiming to fund a city on Mars. However, negotiations fell apart when Musk demanded majority equity and full control, which OpenAI rejected. Musk resigned from the company in 2018 after his proposal to merge OpenAI with Tesla was turned down. OpenAI alleges that Musk's current legal action is an attempt to hinder its mission, especially now that he runs a competing AI company, xAI, valued at $50 billion. Musk's lawsuit accuses OpenAI, now valued at $157 billion, of abandoning its nonprofit mission and becoming a de facto subsidiary of Microsoft, which has invested billions in the AI startup. OpenAI's response highlights Musk's earlier support for a for-profit model and suggests his legal challenge is motivated by competitive concerns rather than the company's mission.