Elon Musk’s AI Feuds: From OpenAI’s Takeover Battle to a Broken Friendship with Larry Page

Elon Musk’s $97.4 billion bid to acquire OpenAI was rejected by Sam Altman, who called it an act of “insecurity,” escalating their rivalry. Meanwhile, Musk’s friendship with Larry Page ended over disagreements on AI safety, particularly after Musk recruited a key Google AI scientist for OpenAI. These conflicts highlight Musk’s ongoing struggles and strategic maneuvers in the AI industry.

CONTENTS:

• Sam Altman Rejects Elon Musk’s $97.4 Billion Takeover Bid for OpenAI, Calls It an Act of “Insecurity”
• Elon Musk and Larry Page: How AI Disagreements Ended a Tech Billionaire Friendship

Sam Altman Rejects Elon Musk’s $97.4 Billion Takeover Bid for OpenAI, Calls It an Act of “Insecurity”

OpenAI CEO Sam Altman has dismissed Elon Musk’s $97.4 billion takeover bid for the AI company, describing it as an attempt driven by “insecurity.” This latest development intensifies the ongoing rivalry between the two tech billionaires.

Speaking at the Paris AI Summit, Altman told Bloomberg Television, “Probably his whole life is from a position of insecurity. I feel for the guy. I don’t think he’s a happy person.”

Reports indicate that Musk, along with a group of investors, has made an unsolicited offer to acquire OpenAI’s assets. The bid was disclosed by Musk’s attorney, Marc Toberoff, who revealed that the Tesla CEO had secured financial backing from prominent firms, including Joe Lonsdale’s 8VC, Valor Equity Partners, Baron Capital, Atreides Management, and Endeavor CEO Ari Emanuel.

However, Altman firmly rejected the proposal, emphasizing that OpenAI is “not for sale.” He accused Musk of trying to “slow us down” instead of innovating with a superior product. In an interview with The New York Post, Altman remarked, “There have been lawsuits, various tactics, and all kinds of other crazy moves—now this.”

Taking a dig at Musk’s $44 billion acquisition of Twitter (now X), Altman posted on the platform, “No thank you, but we will buy Twitter for $9.74 billion if you want.”

Musk quickly fired back, branding Altman a “swindler.” In a statement, he asserted that OpenAI should return to its original mission of being an open-source, safety-driven AI company. His attorney further hinted that, if successful, OpenAI could potentially merge with Musk’s AI venture, xAI.

This bid comes as OpenAI is in discussions for a separate $40 billion funding round led by Japan’s SoftBank. If completed, this investment would raise OpenAI’s valuation to $300 billion—far surpassing the amount Musk’s group has proposed.

While OpenAI has yet to formally assess Musk’s offer, if accepted, the deal could significantly impact its funding negotiations and elevate the company into the ranks of the world’s most valuable private firms, alongside SpaceX and TikTok’s parent company, ByteDance.

Elon Musk and Larry Page: How AI Disagreements Ended a Tech Billionaire Friendship

Elon Musk appears to be reflecting on the loss of one of his closest friendships due to an employee he hired for OpenAI, the company behind ChatGPT. In a recent post on Twitter, Musk shared a clip from an interview where he discussed what led to the breakdown of his friendship with Google co-founder Larry Page.

This is not the first time Musk has spoken about his strained relationship with Page. Walter Isaacson’s biography of Musk, published in September 2023, also detailed how the two former best friends are no longer on speaking terms despite their deep connection in the past.

Musk elaborated on how his falling out with Page stemmed from disagreements over artificial intelligence. The rift deepened when Musk recruited Ilya Sutskever, a top AI scientist from Google, for OpenAI. Once considered close friends—so much so that Musk would stay at Page’s house during visits to Silicon Valley—the two tech moguls drifted apart due to conflicting views on AI safety.

Musk has previously criticized Page for what he saw as a “cavalier” attitude toward the potential risks of AI. Their differences escalated when Musk successfully brought Sutskever to OpenAI with an attractive compensation package, a move that reportedly left Page feeling betrayed. Musk defended his decision, stating that a “countervailing force” was necessary given Page’s perceived lack of concern for AI safety.

Isaacson’s biography also recounts a heated debate between the two at a 2013 birthday celebration, where they argued about AI’s ability to surpass human intelligence. Musk had also tried, unsuccessfully, to prevent Google from acquiring DeepMind. He later stepped down from OpenAI’s board in 2018—well before ChatGPT’s launch—though he has since described that decision as a mistake.

Despite their past friendship, their differing visions for AI’s future have seemingly put an irreparable strain on their relationship.

Interestingly, Page once expressed deep trust in Musk’s ambitions. During a 2014 TED Talk with Charlie Rose, Page stated that he would rather entrust his wealth to Musk than donate it to charity, saying, “He wants to go to Mars to back up humanity. That’s a worthy goal, but it’s a company, and it’s philanthropic.”