Elon Musk Accuses OpenAI CEO Sam Altman of Lying Amid $10B Equity Controversy

Elon Musk Accuses OpenAI CEO Sam Altman Of Lying Over $10B Equity: 'What A Liar' - Oracle (NYSE:ORCL), SoftBank Group (OTC:SFTBY)

Tesla Inc. CEO Elon Musk earlier this week leveled allegations against OpenAI CEO Sam Altman, accusing him of misleading statements about a $10 billion equity agreement. What Happened: Musk on Thursday took to his social media platform, X to express his disappointment with Altman. The tech mogul, sharing a Reuters report from September 2024, said, "Altman literally testified to Congress that he wouldn't get OpenAI compensation, and now he wants $10 billion! What a liar." OpenAI, initially a non-profit organization, is now transitioning to a for-profit model. This shift will see Altman receiving equity in the company, potentially valued at up to $150 billion. Musk's criticism stems from Altman's previous assurance that he would not seek financial gain from OpenAI. OpenAI did not immediately respond to Benzinga's request for comment. See Also: Epic Games CEO Tim Sweeney Prepared To Spend Billions For Decades Fighting Apple, Google Monopolies: 'We Think Our Best Days Are Ahead' For unversed, during his testimony before the U.S. Senate Judiciary Subcommittee on Privacy, Technology, and the Law in 2023, the CEO said that he receives minimal compensation from OpenAI, sufficient only to qualify for health insurance, and holds no equity in the company. He emphasized that his motivation for leading OpenAI is driven by passion rather than financial gain. Why It Matters: This is not the first time Musk has criticized Altman over OpenAI's shift to a for-profit model. In December 2024, Musk labeled the transformation a "total scam" and accused the organization of deviating from its original mission. In a December 2024 interview, Altman referred to Musk as a "legendary entrepreneur" but also a "bully." He noted that Musk would likely be content with OpenAI's progress if he was at the helm. However, despite their strained relationship, Altman acknowledged Musk's crucial role in OpenAI's early funding. Musk co-founded OpenAI in 2015 and left the AI startup in 2018. Since then, he has criticized and sued OpenAI, accusing it of deception and using him for competitive advantage. Altman's stance on political figures has also seen a shift. Earlier this week, Altman publicly expressed his support for President Donald Trump, a shift in his perspective that he attributed to observing the president more closely. Earlier this week, Project Stargate was unveiled as a groundbreaking $500 billion AI infrastructure initiative backed by OpenAI, SoftBank Group SFTBY, and Oracle Corp. ORCL. The project, unveiled by Trump, is designed to position the United States at the forefront of global AI innovation and leadership. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Mark Zuckerberg Is Copying Elon Musk's Playbook Amid Donald Trump's Comeback, But Chamath Palihapitiya Thinks It Is Opportunistic Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock ORCLOracle Corp$183.60-1.54%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewSFTBYSoftBank Group Corp$33.580.54%TSLATesla Inc$405.47-1.68%Market News and Data brought to you by Benzinga APIs

What a Liar: Elon Musk calls out Sam Altman over $10 billion equity in OpenAI report

This could be valued at up to $150 billion and this is also why Elon Musk has openly criticised. Elon Musk is known to publicly criticise people, and he doesn't hesitate. He has now gone ahead and called the OpenAI CEO a liar. He took to his social media platform X (formerly Twitter) to share his disappointment. He said, "Altman literally testified to Congress that he wouldn't get OpenAI compensation, and now he wants $10 billion! What a liar." To give you some context, OpenAI was originally started as a non-profit, but now the company is switching more towards being "for profit". As per a Reuters report, OpenAI is planning a significant restructuring, transitioning control from its non-profit foundation to a for-profit model. In addition to this, Altman is also said to profit from this move. As part of this shift, Altman is set to receive equity in the company. This could be valued at up to $150 billion. This is why Elon Musk has openly criticised the OpenAI Chief as he has previously said that he wouldn't seek financial gain from OpenAI. This isn't the first time that Musk has criticised Altman over OpenAI's trajectory and profit motives. In December 2024, Musk labeled OpenAI's transformation from a non-profit to a profit-driven entity as a "total scam." He even went ahead to accuse the organisation of steering away from its original mission. He said, "OpenAI was funded as an open-source, non-profit, but has become a closed-source, profit-maximizer." When OpenAI announced its $500 billion "Stargate" AI infrastructure project, where it partnered with SoftBank and Oracle, Musk was quick to criticise that too. He questioned the financial feasibility of the project, suggesting some participating companies might lack the necessary funding. This led to a public exchange between Musk and Altman, with the latter dismissing Musk's criticisms as unfounded. What remains to be seen now is how OpenAI transitions to a "for profit" organisation and if any actions will be taken against the company, or if Musk's accusations will just be treated like empty shots.

Elon Musk Slams Sam Altman Amid OpenAI's For-Profit Move & Anti-Trump Funding

Elon Musk vs Sam Altman saga forges ahead with the AI giant under scrutiny. American entrepreneur and billionaire Elon Musk recently slammed OpenAI CEO Sam Altman in light of the AI giant's latest for-profit chronicles. Notably, the Tesla & SpaceX CEO has called Altman "a liar" as he looks to acquire 7% equity in the AI firm amid its shift from a non-profit entity. Meanwhile, with recent reports revealing that the AI firm also funded the anti-Trump media house Axios, the AI giant remains under severe scrutiny. Elon Musk Takes A Dig At Sam Altman, Here's Why In an X post dated January 23, the Tesla & SpaceX lead Elon Musk stated, "Altman literally testified to Congress that he wouldn't get OpenAI compensation, and now he wants $10 billion! What a liar." This statement comes against the backdrop of the AI giant's for-profit shift and decision to hand over 7% equity to its CEO, Altman. Previous reports revealed that Altman is to get 7% of equity in the AI firm as it looks to restructure its business model. In light of this saga, CoinGape reported earlier that Elon Musk called the AI giant a 'profit-maximizer.' Altogether, the recent rebuking by the Tesla & SpaceX CEO aligns with past chronicles, underscoring unhappiness with the AI firm's decision to shift to a for-profit organization. OpenAI Under Scrutiny Amid Anti-Trump Media House Funding In another recent development, IBC Group co-founder Mario Nawfal has spotlighted on X that the Altman-led AI giant funds Axios, a media outlet that blasts president-elect Donald Trump. Notably, Nawfal revealed that the AI entity's "three-year deal marks OpenAI's first direct control of newsroom operations," sparking speculations as Axios has been seen attacking Trump's immigration policies on religious grounds following his inauguration. Besides, it's also noteworthy that Trump announced 'Stargate formation,' bolstering the ChatGPT maker and other firms' AI ventures with massive investments. The abovementioned anti-Trump funding has emerged as contrary to this news, with Elon Musk also reacting to this saga on X. Elon Musk vs Sam Altman: What's The Scoop? This simmering feud between the Tesla lead and Sam Altman began primarily due to the ChatGPT maker's decision to shift from a non-profit to a for-profit organization. Musk, being one of the earlier backers of OpenAI as it initially originated as an open source, has condemned the AI giant for this shift. In the aftermath of the feud, numerous lawsuits between the two American entrepreneurs surfaced, sparking industry discussions globally. Besides, the abovementioned chronicles appear to have further presented the AI firm with quite the backlash across the broader sector.

Stargate to OpenAI: Why Elon Musk and Sam Altman are still fighting

The tech world is abuzz as two of its most prominent figures, Elon Musk and Sam Altman, have taken to social media to air their grievances over the controversial Stargate project. Also read: What a Liar: Elon Musk calls out Sam Altman over $10 billion equity in OpenAI report The very public spat between the Tesla and SpaceX CEO and OpenAI's visionary leader has captivated audiences, with their heated exchanges shedding light on deeper tensions surrounding artificial intelligence, ethics, and personal rivalries. The drama began when Elon Musk tweeted: "Altman literally testified to Congress that he wouldn't get OpenAI compensation, and now he wants $10 billion! What a liar". Musk's tweet referred to Altman's testimony regarding his financial intentions with OpenAI, accusing him of hypocrisy as OpenAI evolved into a for-profit entity under Altman's leadership. Also read: The Musk Effect: From Twitter to X and beyond Sam Altman quickly fired back: "@elonmusk @OpenAI wrong, as you surely know. Want to come visit the first site already under way? This is great for the country". Altman's response was a mix of defence and an invitation, seemingly trying to redirect the conversation towards the Stargate project's potential benefits. In the past, Musk has accused Altman of prioritizing profits over OpenAI's original mission of advancing AI for the greater good. Meanwhile, Altman countered by calling Musk a "bully" who thrives on picking fights, a sentiment echoed in online discussions. At the heart of this feud lies the Stargate project -- a bold initiative aimed at creating advanced AI infrastructure. While details remain sparse, it appears that Musk is sceptical about how OpenAI, under Altman's leadership, has handled its transition from a non-profit to a for-profit model. Musk has long expressed concerns about AI safety and governance, claiming that OpenAI has strayed from its founding principles. Altman, on the other hand, has defended his vision for OpenAI and Stargate, emphasizing its potential to benefit humanity. However, critics argue that OpenAI's partnerships with corporations like Microsoft have made it more profit-driven than altruistic. Also read: How is Sam Altman redefining AI beyond ChatGPT? The internet has been quick to weigh in on the feud. On platforms like Reddit and Hacker News, opinions are sharply divided. Some users side with Altman, arguing that Musk's criticisms stem from bitterness over losing influence at OpenAI. One Redditor remarked: "Musk wanted control of OpenAI while merging it with Tesla. When his terms were rejected, he left in frustration". On the other hand, a thread on Hacker News criticizes Altman for actions such as dissolving OpenAI's safety team, transitioning to a for-profit model, and allegedly prioritizing short-term financial gains over long-term AI goals. One user suggests Altman is in "exit preparation mode," focusing on maximizing profits rather than advancing AGI responsibly. While the Musk-Altman clash may seem like a personal rivalry played out in public view, it underscores critical debates about AI development. Questions about transparency, accountability, and ethical considerations loom large as companies race to develop increasingly powerful technologies. As for public sentiment? It appears many are growing weary of billionaire feuds dominating discourse around important technological advancements. In conclusion, the Musk-Altman feud may be entertaining to watch unfold on social media, but it also reminds us of the high stakes involved in shaping the future of artificial intelligence. Whether their differences can be reconciled remains uncertain, but what's clear is that these debates will continue to shape public discourse around technology for years to come.