In a surprising display of reconciliation, OpenAI CEO Sam Altman offered measured praise for his rival and former collaborator Elon Musk during Wednesday’s DealBook Summit. Despite their ongoing legal battles and public feuding, Altman expressed confidence that Musk won’t abuse his newfound political influence as an advisor to President-elect Donald Trump.
The relationship between these two AI titans has been tumultuous. Altman acknowledged his “different feelings” about Musk compared to when he viewed him as a “mega hero,” but emphasized he’s “still glad he exists.” He credited Musk with pushing people, including himself, to “think much more ambitiously” during a time when the world wasn’t thinking big enough.
Most notably, Altman stated he believes Musk will “do the right thing” given his proximity to political power. “It would be profoundly un-American to use political power, to the degree that Elon has it, to hurt your competitors and advantage your own businesses,” Altman said, adding that such behavior would “go so deeply against the values” Musk holds dear. Musk appeared to appreciate the gesture, liking a post on X that featured Altman’s quote.
The feud between the two dates back to 2018 when Musk stepped down from OpenAI’s board after the company rejected his offer to run it and he withdrew future funding. The conflict escalated in March when Musk sued OpenAI and Altman, alleging the company’s transition to a “capped-profit” entity and Microsoft partnership violated its nonprofit origins. Though Musk dropped that suit in June after a reported reconciliation at a Montana tech conference, he filed a new lawsuit months later claiming he was “deceived” into cofounding OpenAI. Last month, he amended the suit to include Microsoft as a defendant.
The stakes are enormous in this AI rivalry. Musk’s xAI company was recently valued at $50 billion just 16 months after founding, while OpenAI reached a $157 billion valuation in October. According to reports, Musk “despises” Altman, and Altman’s attempts to contact Trump have been largely unsuccessful due to Musk’s influence. When asked if he expected xAI to be serious competition, Altman responded with a simple, confident “Yes.”
Key Quotes
I grew up with Elon as a mega hero. I thought what Elon was doing was absolutely incredible for the world. Of course, I have different feelings about him now, but I’m still glad he exists.
Sam Altman shared these reflections at the DealBook Summit, acknowledging both his changed perspective on Musk and continued respect for his contributions to ambitious thinking in technology and business.
It would be profoundly un-American to use political power, to the degree that Elon has it, to hurt your competitors and advantage your own businesses. I don’t think Elon would do it. It would go so deeply against the values I believe he holds very dear to himself.
Altman expressed confidence that Musk won’t abuse his advisory role to President-elect Trump to harm OpenAI, framing it as a matter of American values and Musk’s personal principles—a statement that serves as both praise and subtle warning.
OpenAI has attempted to starve competitors of AI talent by aggressively recruiting employees with offers of lavish compensation, and is on track to spend $1.5 billion on personnel for just 1,500 employees.
This claim from Musk’s lawyers in the amended lawsuit illustrates the intensity of competition between the AI companies, highlighting OpenAI’s aggressive talent acquisition strategy as a key point of contention in their legal battle.
Our Take
Altman’s calculated diplomacy at the DealBook Summit reveals the delicate balance AI leaders must strike between competition and collaboration. His comments appear designed to publicly hold Musk accountable while leaving room for future cooperation. The timing is strategic—with Musk gaining political influence, Altman is essentially creating a public record of expectations for ethical behavior. However, the underlying tension remains palpable. The fact that Altman’s attempts to reach Trump have been blocked by Musk’s influence suggests the rivalry is far from resolved. This feud transcends personal animosity; it represents competing visions for AI’s future—OpenAI’s partnership-driven, increasingly commercial approach versus xAI’s rapid, Musk-led alternative. The outcome will significantly influence AI development, regulation, and accessibility for years to come. The industry should watch closely how political power intersects with AI competition under the new administration.
Why This Matters
This development is significant for the AI industry’s power dynamics as two of its most influential figures navigate both business competition and political influence. With Musk advising the incoming Trump administration while simultaneously competing against OpenAI through xAI, concerns about potential conflicts of interest are legitimate. Altman’s public statement serves multiple purposes: it’s both an olive branch and a preemptive warning against potential abuse of political power.
The rivalry between OpenAI and xAI represents more than personal animosity—it reflects fundamental questions about AI development, governance, and commercialization. Their legal battles center on whether OpenAI abandoned its open-source, nonprofit mission, a debate that affects how the entire industry thinks about AI safety, accessibility, and profit motives. With xAI reaching a $50 billion valuation in record time and OpenAI valued at $157 billion, the competition will shape AI’s trajectory for years to come. The intersection of AI leadership and political power under the Trump administration adds unprecedented complexity to an already contentious relationship, making this story crucial for understanding future AI policy and regulation.
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