Elon Musk hates OpenAI CEO Sam Altman. But Why?

Elon Musk and Sam Altman are both great entrepreneurs at the forefront of AI innovation. But they don’t see eye-to-eye. Elon called him “Scam” Altman recently. So, it’s hard for you to believe that they were both once close allies,  starting their work together to shape the future. However, their relationship has turned sour and into one of the biggest rivalries in the tech world.

It all started somewhere between 2015 to 2018!

Elon Musk and Sam Altman started OpenAI in 2015

Around 2012, Sam Altman and Elon Musk came together through Geoff Ralston, a partner at Y Combinator, a startup accelerator. They both expressed great enthusiasm for AI and soon started establishing a way for AI to develop under safe conditions for everyone.

In 2015, Altman suggested the creation of an AI research lab modeled after the “Manhattan Project” but for AI. The latter was supportive of the theory, and together they founded OpenAI. The company was established first as a non-profit with its vision and mission of developing AI for the sake of humanity.

But even by those early days, differences in this vision arose.

In the middle of anything that could be conceived, Altman saw a perfect for-profit structure, while Musk came to consider there is a serious risk of rogue AI and the need for regulations.

Disagreements between them started soon

OpenAI started as a non-profit organization initially. However, in 2017, the company realized it needed billions of dollars to sustain its research. Because of this, there were talks surrounding the conversion of OpenAI into a for-profit model to attract investors.

OpenAI themselves revealed that Elon committed them $1 Billion in funding but Elon only gave them $45 Million in funding. Elon wanted a majority equity stake in the company as well as the initial board control. But that was not his complete wish.

He also proposed a merger of OpenAI and Tesla and said he would be happy to serve as its CEO, according to reports. He wanted to ensure more funds and take OpenAI to great heights in AI technology.

However, Altman and the OpenAI team were not ready to accept Musk’s proposal. Musk left OpenAI in early 2018.

But it was not the end.

Musk continued to speak up about developments in AI after leaving OpenAI. He both praised and criticized OpenAI’s launch of ChatGPT, the popular LLM that took the world on fire, in November 2022, tweeting that ChatGPT was “scary good” while also issuing a cautionary note regarding the dangers that could result from AI getting too powerful.

In March 2023, Musk began his own AI company, xAI, aiming to compete with OpenAI directly. He launched Grok, an AI chatbot meant as a rival to ChatGPT. Altman mocked some of Grok’s humor and features on social media, further antagonizing Musk and stoking their rivalry.

The Rivalry Continues

In 2024, Elon Musk sued OpenAI, accusing it of straying from its conscience by switching to a for-profit form. He charged that OpenAI should have been open-source rather than sold access to its technology.

Although Musk withdrew the suit, he refilled it in August 2024, maintaining he was tricked into co-founding the company and accusing OpenAI and Microsoft of acting as monopolists.

OpenAI filed a counter-claim against Musk for harassment. Musk then fairly widened his complaint to include Microsoft as of November 2024, now arguing that both actors were doing exactly what he needed-exploiting his openings to build up a for-profit monopoly.

During this, he referred to Altman as “Swindly Sam.”

Now coming back to 2025, Sam Altman, along with US President Donald Trump, announced the Stargate project $500 billion scheme to create an AI infrastructure through a partnership involving OpenAI, Oracle, and SoftBank. Trump called Altman the AI expert, whereas Altman credited Trump for supporting the venture.

Musk quickly questioned the funding for the project, calling Altman a liar. Altman bit back, labeling Musk’s comments “self-serving.”

As the disagreements became heated, Musk kept attacking the financial support of Stargate, citing reports insinuating its economic shelf life. 

Conclusion

The fight between Elon Musk and Sam Altman has evolved from a philosophical disagreement into a full-blown legal and personal battle. What began as a shared vision for the future of AI has turned into a fight over control, ethics, and influence in the industry.

With AI becoming increasingly central to global technology and policy, the Musk-Altman feud highlights the high stakes involved.