Musk-Altman Feud Escalates Over OpenAI's Structure & Missed Roadster Delivery

Musk and Altman Feud Intensifies Over OpenAI Structure and Tesla Roadster Refund

The weekend saw a fresh escalation in the ongoing feud between Elon Musk, CEO of Tesla, and Sam Altman, co-founder of OpenAI. The tech titans traded accusations, each accusing the other of unethical conduct. The spat was ignited when Altman posted that he was canceling his Tesla Roadster pre-order and requesting a refund due to the vehicle's years-long delays. Altman shared a screenshot of a July 2018 email confirming his $45,000 payment for reserving the next-generation Tesla Roadster. Another screenshot showed his subsequent request for a $50,000 refund, which bounced back due to an apparently defunct booking email address. Musk responded on Saturday with a post stating, "You stole a non-profit." This was a direct jab at OpenAI's recent shift to a for-profit structure. The move has drawn scrutiny from various quarters, including Musk, who believe the company has strayed from its original mission. Regarding Altman's screenshot of the Tesla refund email error, Musk retorted that Altman "conveniently omitted" the fact that Tesla refunded the money within 24 hours, sarcastically adding, "That’s so on brand for you."

A History of Conflict and Increasing Competition

Musk and Altman co-founded OpenAI in 2015 alongside Ilya Sutskever and Greg Brockman, initially as a non-profit AI research company. However, their relationship gradually soured, leading to public attacks on social media and in legal filings. Musk left the OpenAI board in 2018 and founded a competing company, xAI, in 2023, while Altman currently serves as OpenAI's CEO. The rivalry between them has steadily intensified.

Altman's Rebuttal and Clarification on OpenAI's Structure

Altman responded on Sunday via X, stating, "I helped you turn the thing you abandoned into the largest non-profit in the world. You know as well as anyone that to do that, it needed a structure like OpenAI has now." He further pointed out that Musk had wanted Tesla to acquire OpenAI and run it for profit, "You didn’t want a non-profit structure at all back then." "Now you have a great AI company, and we have one too. Can’t we just move forward?" Altman asked, referring to xAI, the company Musk founded after his fallout with OpenAI.

Transition to For-Profit and New Ownership Structure

Last week, OpenAI officially announced its transition to a for-profit company. Under the new organizational structure, the non-profit OpenAI Foundation will have legal control over a public benefit company called OpenAI Group, which will be free to raise capital. The OpenAI Foundation will hold a 26% stake in the for-profit entity, while Microsoft holds 27%, with the remaining equity distributed among investors and employees. The company wrote, "This non-profit, now called the OpenAI Foundation, owns equity in the for-profit, currently valued at approximately $130 billion, making it one of the most well-resourced charities. This recapitalization will also provide the Foundation with additional equity as the OpenAI for-profit reaches valuation milestones."

Future Collaboration

"The OpenAI Foundation and OpenAI Group will work together collaboratively to advance the response to the significant challenges and opportunities presented by the development of AI," the company stated. Additionally, news surfaced last week that OpenAI may file for an IPO in the second half of 2026 and complete the IPO in 2027, with a valuation estimated at around $1 trillion. Altman denied rumors of an IPO next year, stating that there is no specific date for an IPO. He revealed that the company's annual revenue far exceeds $1.3 billion and indicated that losses will persist.