From OpenAI Allies to Bitter Rivals: Inside the Sam Altman–Elon Musk Feud

What began as a shared mission to protect humanity from dangerous artificial intelligence has turned into one of Silicon Valley’s most public and personal fallouts. The escalating feud between Elon Musk and Sam Altman now spans lawsuits, insults and rival AI empires.

Here’s how two former allies ended up locked in a bitter battle over power, profit and the future of AI.

How did Elon Musk and Sam Altman start working together?

Musk and Altman co-founded OpenAI in 2015 as a non-profit research lab aimed at developing artificial intelligence for the benefit of humanity. Musk was one of its biggest early backers, donating tens of millions of dollars, while Altman became the public face and operational leader of the organisation.

When did cracks first appear in their partnership?

Tensions surfaced well before Musk’s formal exit in 2018. Musk reportedly wanted greater control over OpenAI’s direction and leadership, while Altman pushed for an independent structure. Musk eventually stepped down from OpenAI’s board, citing conflicts of interest with Tesla’s AI work, but disagreements over control and strategy had already hardened.

Why did OpenAI’s business model become the flashpoint?

In 2019, OpenAI shifted from a non-profit to a “capped-profit” model, creating OpenAI LP. This allowed it to raise large sums of capital, including billions from Microsoft. Musk has repeatedly argued that this move betrayed OpenAI’s founding mission, an accusation Altman strongly rejects.

What triggered the legal showdown between Musk and Altman?

In February 2024, Musk sued OpenAI and Altman, alleging breach of contract and fiduciary duty. He claimed OpenAI abandoned its promise to remain open-source and instead prioritised profits through its close partnership with Microsoft and the proprietary development of GPT-4.

How did the feud turn personal and public?

The dispute quickly spilled onto social media. After Musk urged users to stop using ChatGPT, Altman reportedly called Musk a “liar” and accused him of abusive behaviour. Musk, in turn, mocked OpenAI’s leadership and questioned Altman’s credibility. The rhetoric marked a complete breakdown of their once-collaborative relationship.

Where does Musk’s rival AI venture fit in?

Musk launched xAI in 2023, positioning it as a direct challenger to OpenAI. Its chatbot, Grok, is integrated into X (formerly Twitter). Musk has openly attacked ChatGPT while promoting Grok, intensifying the competitive and ideological conflict with Altman.

How has Altman defended himself and OpenAI?

Altman has pushed back forcefully, accusing Musk of spreading misinformation and misrepresenting OpenAI’s goals. He has defended OpenAI’s commercial partnerships as necessary to fund safe and scalable AI development, while maintaining that safety remains central to the company’s mission.

What is really at stake in the Altman–Musk feud?

Beyond personal animosity, the feud reflects deeper tensions over AI governance, transparency and control. With AI systems now influencing economies, politics and society, the clash between Musk and Altman has become a proxy war over who gets to shape humanity’s most powerful technology.

Is there any chance of reconciliation?

There are no signs of détente. Lawsuits continue, public attacks are escalating, and both men are entrenched in rival AI ecosystems. What began as a philosophical disagreement now looks like a permanent rupture, turning former allies into adversaries fighting for AI supremacy and moral authority.

(With inputs from yMedia)