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OpenAI Exec: Elon Musk a ‘Strong Competitor,’ Raises Concerns Over Lawfare Tactics

Published
Kurt Robson
Published
By Kurt Robson
Edited by Samantha Dunn
Key Takeaways
  • Elon Musk has been called a “strong competitor” to OpenAI by the firm’s chief financial officer, Sarah Friar.
  • The OpenAI exec said the company had remained focused on its restructuring despite criticism from the Tesla boss.
  • Musk has expanded his lawsuits against the ChatGPT-maker to center around their impact on AI competition.

Sarah Friar, the chief financial officer of OpenAI, has issued a rare compliment to Elon Musk— claiming the company sees him as a “strong competitor.”

The comments follow a seven-year feud between the Tesla founder and OpenAI’s CEO, Sam Altman, over how the ChatGPT maker should be run.

Musk has sought to halt OpenAI’s transition into a for-profit company, escalating legal proceedings with new claims that he was “manipulated” into helping start the AI firm.

In an interview  with Bloomberg, Friar said the company hopes Musk will stop using “law and lawfare tactics” to compete with AI development.

Elon Musk a ‘Competitor’ to OpenAI

When questioned about how OpenAI is currently navigating the restructure, especially amid Musk’s criticism, Friar said the firm was remaining focused on its mission.

“We see Elon as a competitor, we think he is a strong competitor,” Friar told Bloomberg Live . “But we hope he won’t keep resorting to using law and lawfare tactics to compete.”

Friar claimed that Musk himself knew that creating AI is a “capital-intensive business.”

“…I think even he recognized very early on that it would require us to be much more than a non-profit,” Friar said.

“I actually think he has even said we shouldn’t be a non-profit in order to raise the capital required,” she added.

In December 2024, OpenAI responded to Musk’s latest lawsuit with a blog post  claiming the Tesla CEO had previously advocated for the organization to become a for-profit.

“Musk’s latest legal filing against OpenAI marks his fourth attempt in less than a year to reframe his claims,” OpenAI said. “However, his own words and actions speak for themselves.”

Musk vs. Altman

After successfully launching the OpenAI in 2015, Musk left the company three years later, citing a conflict of interest with his AI work at Tesla.

Since his departure, Musk has criticized almost every move made by the AI firm under Altman’s leadership.

The Tesla boss has sued the firm numerous times over allegations that it illegally converted the operation.

In one lawsuit, Musk even claimed that Altman and co-founder Greg Brockman “manipulated” him to help create the company.

The lawsuit stated that Musk was “deceived” by fellow co-founders, preying on “Musk’s humanitarian concern about the existential dangers posed by AI.”

Musk’s most recent lawsuit, filed in August 2024, accused OpenAI and Altman of violating the original contract provisions by prioritizing profits over humanity.

“Never before has a corporation gone from tax-exempt charity to a $157bn for-profit, market-paralyzing gorgon – and in just eight years,” the lawsuit filing read.

Competition or Humanity?

While many of Musk’s complaints against OpenAI revolve around the firm’s move away from its original mission of AI for humanity, many also deal with the competition they pose for his new AI venture, xAI.

Launched in 2023, Musk has marketed his AI startup as “truth-seeking,” mixing into his view that AI should be open and transparent.

In November, Musk expanded  his lawsuit against OpenAI to include its biggest backer, Microsoft, as a defendant.

Musk’s amended lawsuit claimed Microsoft and OpenAI illegally sought to monopolize the market.

OpenAI has repeatedly retaliated against Musk, accusing  the billionaire of pursuing lawsuits as part of an “increasingly blusterous campaign to harass OpenAI for his own competitive advantage.”

“OpenAI is dedicated to the safe and beneficial development of artificial general intelligence,” OpenAI and Altman said in a lawsuit filing.

Adding: “Musk once supported OpenAI in that mission, but abandoned the venture when his bid to dominate it failed.”

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Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.
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