Over the past year, the rivalry between Silicon Valley titans Sam Altman and Elon Musk has escalated into personal attacks, social media spats, and lawsuits.
Musk has called his rival âScam Altmanâ and âSwindly Sam.â Altman has said Musk âcannot be a happy personâ and that his âwhole life is driven by insecurity.â This week, after Musk announced he would sue Apple for allegedly promoting Altmanâs OpenAI in the App Store over his own xAI startup, Altman accused Musk of manipulating X to âserve himself and his companies.â Musk responded by calling Altman a liar.
The two co-founded OpenAI as a nonprofit in 2015, but Musk stepped down from the board three years later after a failed acquisition attempt. When OpenAI launched ChatGPT in late 2022 to great fanfare, Musk founded xAI in March 2023, touting it as an âanti-woke solution.â Last year, Musk sued Altman to stop his former friend from turning OpenAI into a for-profit company. Altman countersued, saying Musk had ârelentlesslyâ tried to sabotage OpenAI.
But the competition between OpenAI and xAI is now just one front in a larger battle between Altman and Musk, with Altman making a number of movesâboth through OpenAI and through his vast personal investment portfolioâto develop products and technologies that directly target Muskâs businesses.
Altman is backing a new brain-computer interface startup called Merge Labs, which is directly competing with Muskâs Neuralink, according to the Financial Times. Altman co-founded the company, which is currently raising capital at a valuation of $850 million. (Interestingly, Altman was also a small investor in Neuralink.) Neuralink, which Musk co-founded in 2016, is currently valued at around $9 billion, with Musk as its largest individual shareholder.
In parallel, Altman is also positioning OpenAI to compete directly with X â Muskâs social network (formerly Twitter). According to The Verge, OpenAI is building an âX-likeâ social platform that could pose a major threat to X. Currently, X has about 600 million monthly users (according to Statista), while OpenAI claims ChatGPT has up to 700 million weekly users.
Altman didnât stop there, but he also took aim at Tesla. Teslaâs sales fell 13.5% in the second quarter of 2025 compared to the same period last year, prompting Musk to turn to self-driving taxis as a new growth driver. He told CNBC in May that âby the end of next year, there will be hundreds of thousands, if not over a million, self-driving Teslas in the U.S.â But thereâs no evidence that Tesla has been approved for full self-driving yet.
Meanwhile, in June, OpenAI announced a partnership with Applied Intuition (a self-driving software company valued at $15 billion) to âadvance the next generation of AI-powered car experiences globally.â Altman then asserted that OpenAI had made a big step forward in self-driving technology, while also taking a swipe at Tesla: âWe have new technology that can make self-driving cars better than any current approach,â Altman said on his brotherâs podcast.
Altman also invested in Longshot Space, a company that dreams of competing with Muskâs SpaceX. He also invested in Glydways, another self-driving car startup that could one day rival Teslaâs robot taxis.
FROM FRIEND TO ENEMY
Musk, 54, and Altman, 40, werenât always rivals. They met in the early 2010s, when Altman was president of startup incubator Y Combinator and Musk was focused on expanding SpaceX and Tesla.
The two connected over their shared concerns about the dangers of artificial intelligence, and co-founded OpenAI in 2015 with the goal of developing responsible AI. Musk has been the organizationâs largest donor, contributing $44 million in 2016â2017.
Musk, however, left OpenAIâs board in 2018 after what was widely seen as a failed attempt to merge the organization with Tesla. The two appear to have remained on good terms, though. In 2019, when Tesla was struggling, Altman defended the company, saying that âbetting against Elon has always been a mistake in history.â
When ChatGPT went public in November 2022, Musk also praised the chatbot as âso creepy and brilliantâ and criticized the New York Times for not reporting it fully.
But the relationship began to fray in 2023, as Musk prepared for xAI. In February 2023, Musk posted a meme suggesting that ChatGPT had usurped the media and become âthe captain of propaganda.â In March, he worried that Microsoft had âexclusive access to the entire OpenAI source codeâ after investing $13 billion.
The two sides remained friendly, however, even joking and philosophizing with each other on social media. But by late 2023, Musk had begun publicly mocking ChatGPT, calling it âannoyingâ and using xAIâs Grok chatbot to make sarcastic remarks.
The conflict escalated in early 2024, when Musk made a $97.4 billion offer to buy OpenAIâs assets (which the company did not sell), and then sued OpenAI, Altman, and co-founder Greg Brockman in California. Musk later withdrew the lawsuit but filed a similar lawsuit in federal court. In April of this year, OpenAI countersued, accusing Musk of a âyear-long campaign of harassmentâ aimed at undermining OpenAI. The court dismissed some of Muskâs claims and allowed OpenAI to continue its counterclaims. The trial is scheduled for next year.
As the feud between the two deepens, many in Silicon Valley are watching with amusement. Billionaire investor Vinod Khoslaâwho has warned about the dangers of AIâthinks that the competition is ultimately good for the ecosystem: âThe more competition, the better,â he told Forbes in an email.
But convincing Musk or Altman to believe that would be no easy task.
Leave a Reply