An exclusive paywalled article in The Information about Musk's bid for OpenAI is placed into the context of the personal rivalry between Musk and Altman, as described by an excellent insightful article in the Wall Street Journal.
"OpenAI Board Will Reject Musk’s ‘Embarrassing’ Takeover Bid, CEO Says", The Information, 2/11/25..
1. OpenAI's for-profit subsidiary is still subject to decisions by its nonprofit owner. But OpenAI CEO Sam Altman wants to convert the for-profit into a public benefit corporation in which the non-profit would own a minority share
2. Altman dismissed Elon Musk’s surprise bid for the nonprofit's assets (mainly its share of the for-profit), with the nonprofit's 10- person board backing his rejection.
3. Musk argues the nonprofit’s stake is undervalued, offers $190 billion to purchase its assets, pushes for an auction, and appeals to state regulators in Delaware (where OpenAI is incorporated) and California (OpenAI's offices) to intervene to ensure the nonprofit's receipt of fair compensation for its assets.
4. A high valuation for the nonprofit's assets would dilute the stakes of the for-profit's investors, including Microsoft.
Key Moments of Conflict Between SamAltman and Elon Musk
1. The Power Struggle Over OpenAI:
- 2015: Altman and Musk co-founded OpenAI to prevent Google’s monopoly on AGI (Artificial General Intelligence)
- 2017: OpenAI needed more funding than a nonprofit could raise.
- Musk demanded majority control and CEO position.
- Altman blocked Musk by rallying co-founders Greg Brockman and Ilya Sutskever against him.
- 2018: Musk quit OpenAI in frustration after being denied leadership.
Blog editor’s note —
The Journal’s extensive report omitted two crucial events that provided the context for OpenAI’s viral success after Musk’s departure:
- The publication of Google’s seminal paper “Attention is All You Need” in mid 2017 provided the foundation for generative AI. This paper recommended the simultaneous processing of multiple streams of data, a process best implemented by graphics processing units (GPUs). The paper triggered AI's insatiable demand for ever more GPUs, such as those produced by Nvidia.
. - Open AI’s subsequent development of the chatbot that “translated” a user’s request in plain English (or other human language) into the formal sequence of terms required by a large language model’s API. Chatbots enbled “everyone” to use the models.
So Musk quit before the work that made OpenAI successful had begun.
2. Musk’s Reaction to OpenAI’s Rise (and His Exclusion):
- 2022: OpenAI released ChatGPT, a global sensation.
- Musk was caught off guard and publicly criticized OpenAI for moving too fast on AI without proper safety measures.
- 2023: Musk signed an open letter calling for a 6-month AI development pause but was largely ignored.
- 2024: Musk launched xAI as a rival AI company but failed to make an impact against OpenAI.
3. The Courtroom Battle:
- 2024: Musk sued OpenAI and Altman, claiming they betrayed OpenAI’s nonprofit mission.
- Musk withdrew, refiled, and amended the lawsuit multiple times to attack OpenAI’s shift toward profit-making.
- Altman dismissed Musk’s bitterness, saying left before OpenAI became successful.
4. Altman’s Stealth Maneuvering to Secure Trump’s Support:
- Musk built deep connections with Trump, spending millions to support his campaign.
- Altman had no ties to Trump’s circle and was largely blocked by Musk’s influence at Mar-a-Lago.
- Altman worked around Musk by securing deals with Trump-connected investors:
-- Anduril (defense startup, Trump-backed
-- SoftBank’s Masayoshi Son (met Trump at Mar-a-Lago, promised $100B in US infrastructure investments
--Larry Ellison (Musk’s former ally, betrayed after Musk backed out of a Texas data center deal).
5. The Final Blow—Altman’s pre-inaugural “Masterstroke”.
- Altman orchestrated a meeting between OpenAI and Trump four days before the inauguration.
- Trump was sold on Stargate, loving the $500 billion investment figure.
- On Trump’s first full day in office, Altman shocked Musk by announcing the $500 billion Stargate AI infrastructure project alongside Trump in a White House press conference.
- The announcement caught Musk off guard, as he had no clue about OpenAI’s involvement.
- Musk lashed out, calling Stargate “fake” on X, shocking Trump allies.
6. Musk’s Last-Ditch Effort: The Hostile Takeover Attempt
- Mid-January 2025: Musk began assembling investors to launch a hostile $97.4 billion bid for OpenAI’s nonprofit.
- Musk’s pitch: “Let’s go to war with Sam Altman.”
- January 2025: While Altman was at the Paris AI Summit, WSJ broke the story of Musk’s bid.
- Altman publicly mocked Musk’s bid, tweeting: “No thank you, but we will buy Twitter for $9.74 billion if you want.”
- Musk later backtracked, saying he’d drop the bid if Altman kept OpenAI nonprofit.
7. OpenAI’s Response: Flat Rejection
- OpenAI’s board officially rejected Musk’s bid.
- Board chairman Bret Taylor: “OpenAI is not for sale, and Musk’s attempts to disrupt his competition have failed.”
- Altman’s parting shot: “Musk operates from a place of insecurity. I don’t think he’s a happy person.
- Text The Verge
Elon Musk just got a firm “thanks, but no thanks” from OpenAI’s board, which unanimously rejected his $97.4 billion bid to take over the company. In true Silicon Valley roast battle fashion, Sam Altman clapped back with, “No thank you, but we will buy Twitter for $9.74 billion if you want.” A savage reminder that Musk overpaid for his last big acquisition.
Musk’s lawyers are now offering a conditional retreat, saying he’ll drop the bid if OpenAI stays a nonprofit—but the board doesn’t seem interested. Instead, OpenAI chair Bret Taylor reassured everyone that whatever restructuring happens, it won’t involve Musk. Translation: Move along, Elon.
-- Outcome
"At the summit, the US and UK refused to sign a declaration on "inclusive and sustainable" AI, which was supported by 60 countries, including France, China, and India."
... Outcome discussed in "Vance tells Europeans that heavy regulation could kill AI", Jeffrey Dastin and Ingrid Melander, Reuters, 2/11/25 ... and NY Times, AP News
- Text NY Times
- Vice President J.D. Vance declared the U.S. will dominate AI in hardware, software, and policy, rejecting Europe’s focus on safety and regulation.Trump’s 25% steel tariffs set a combative tone ahead of Vance’s speech, reinforcing an aggressive economic stance.
- Europe’s strict AI regulations (Digital Services Act, Digital Markets Act) clash with U.S. tech giants, with Meta and Zuckerberg urging Trump to push back.
- Macron calls for AI investment ($100B), but Europe lags behind U.S. and China.
- U.S. and U.K. refused to sign the summit’s final agreement, signaling a policy divide.
- European Commission President von der Leyen insists Europe is still in the AI race, but America isn’t waiting.
Detailed Summary 2: Key Takeaways from Vance’s Speech on U.S. AI Dominance.
1. “America First” AI Strategy:
• Vice President J.D. Vance declared the U.S. would dominate AI across hardware, software, and regulations, leaving no room for a “shared” global AI leadership.
• Unlike previous American AI policy speeches, Vance avoided discussing “guardrails,” AI safety, or equity, focusing purely on economic and strategic power.
2. Blunt Approach to Transatlantic Relations:
• The speech came hours after Trump imposed 25% tariffs on European steel, signaling a combative economic stance.
• Vance left immediately after speaking, skipping European reactions.
• The U.S. and U.K. refused to sign the AI summit’s final communiqué, marking a deliberate policy break.
3. Vance Distances the U.S. from AI Safety Concerns:
• He dismissed the Bletchley Park AI Safety Summit’s warnings of catastrophic AI risks.
• Unlike Kamala Harris’ prior AI speech emphasizing trustworthy AI, Vance pushed an aggressive innovation-first approach.
• His core message: “AI success won’t be won by hand-wringing over safety.”
4. Regulation and Misinformation Battles:
• Vance criticized European digital regulations that enforce content moderation, contrasting government-controlled “misinformation policing” with American free speech values.
• This aligns with Trump’s recent disbanding of government boards that tracked online disinformation.
• However, Vance also warned about China, Russia, and Iran “weaponizing AI” to spread disinformation—without explaining how the U.S. plans to counter it.
5. U.S. vs. EU AI Regulation Clash:
• Europe regulates tech far more aggressively than the U.S. through:
-- Digital Services Act (2022): Fines companies for failing to remove misinformation.
-- Digital Markets Act (2022): Forces tech giants to enable competition.
• European regulators have fined Apple, Google, and Meta billions over antitrust and misinformation concerns.
6. Macron’s Balancing Act on AI Policy:
• French President Emmanuel Macron is pushing for lighter regulation in AI, fearing Europe will fall behind.
• France has secured $100 billion in private AI investment, but this pales in comparison to U.S. spending.
7. U.S. Tech Industry Pushback Against Europe:
• Meta’s Mark Zuckerberg called for Trump to defend U.S. tech from European regulations, claiming they amount to “censorship.”
• Meta has already ended its own fact-checking program, aligning with Trump’s stance on misinformation policing.
European Response: Confidence vs. Reality Check:
• European Commission President Ursula von der Leyen countered claims that the U.S. and China had already won the AI race.
• She touted Europe’s “distinct AI brand” focused on:
-- Complex applications
-- Collaboration over competition
-- Open-source development
• However, her pledge of $200 billion in AI investment still falls short of U.S. and Chinese AI budgets.
Conclusion
• The U.S. is pushing an unapologetic AI power play, brushing aside European concerns over safety and misinformation.
• Vance made it clear that AI dominance—not AI ethics—is America’s priority under Trump.
• Europe’s regulatory-heavy approach risks leaving it behind in the AI race, despite insistence that it’s still competitive.
• The battle over AI leadership isn’t just technological—it’s geopolitical, and the U.S. isn’t waiting for Europe to catch up.
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