In the tech world, few rivalries have captured attention quite like that between Sam Altman, the CEO of OpenAI, and Elon Musk, the mastermind behind companies like Tesla and Neuralink. Over the past year, their previously amicable relationship has soured, devolving into personal attacks, social media jabs, and even legal battles.
Altman and Musk, who co-founded OpenAI as a non-profit organization in 2015, were once close allies. Their bond was forged through a shared concern about the potential dangers posed by artificial intelligence. Musk was the largest individual backer of OpenAI, contributing a staggering $44 million during its inception. However, Musk's departure from OpenAI's board in 2018, following a failed attempt to merge it with Tesla, marked the beginning of their turbulent relationship.
As the rivalry escalated, Musk began referring to Altman as “Scam Altman” and “Swindly Sam,” while Altman countered that Musk “can't be a happy person” and that his actions stem from insecurity. The clash reached new heights recently when Musk announced plans to sue Apple for allegedly promoting Altman’s OpenAI in the App Store over his own startup, xAI.
The rivalry between OpenAI and Musk's xAI is just one aspect of their ongoing conflict. Altman has been strategically making moves to develop products that directly challenge Musk's businesses. For instance, Altman is backing a new brain-computer interface startup called Merge Labs, which aims to compete with Musk's own Neuralink. This new venture is reportedly seeking to raise capital at an impressive $850 million valuation.
Interestingly, Altman is also a small investor in Neuralink, demonstrating the complex dynamics of their relationship. Musk, who co-founded Neuralink in 2016 and is its largest individual shareholder, now faces competition from his former ally.
Beyond brain-computer interfaces, Altman is positioning OpenAI to compete with Musk’s social media platform, X (formerly known as Twitter). Reports indicate that OpenAI is developing a social media arm that could rival X, which boasts around 600 million monthly users. In contrast, OpenAI claims that its ChatGPT has achieved 700 million weekly users, suggesting a potential threat to Musk's platform.
Altman is also setting his sights on Tesla. Recent reports indicate that Tesla's vehicle sales fell by 13.5% in the second quarter of 2025, prompting Musk to pivot towards self-driving taxis as a new growth area. However, Altman has announced a partnership with self-driving software maker Applied Intuition, which aims to advance AI-powered vehicle experiences globally. This partnership could undermine Tesla's position in the autonomous vehicle market.
In a surprising twist, Altman has invested in Longshot Space, a company that aims to rival Musk's SpaceX with a unique satellite-launching technology. Additionally, he has backed Glydways, a robocar startup that could potentially compete with Tesla’s self-driving initiatives.
The legal landscape between Musk and Altman is equally tumultuous. Musk previously sued Altman to prevent OpenAI from transitioning into a for-profit entity, a move Altman countered by claiming Musk was actively trying to undermine OpenAI. The tension escalated with Musk’s $97.4 billion bid for OpenAI’s assets, which he later withdrew. However, he proceeded to file a similar lawsuit in a federal court.
In April, OpenAI countersued Musk, alleging he engaged in a prolonged harassment campaign against the organization. The legal proceedings continue to unfold, with a jury trial scheduled for next year.
The escalating feud between Altman and Musk has captivated observers in Silicon Valley, with many seeing it as a source of competition that could ultimately benefit the tech ecosystem. Legendary investor Vinod Khosla remarked that “more competition is always good.” However, given the personal nature of their conflict, it remains to be seen how this rivalry will impact their respective companies and the broader landscape of artificial intelligence.
