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Musk’s Failed Tesla AI Takeover Sparks Legal Battle with OpenAI

Financial Times Companies •
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Elon Musk once eyed a new AI hub inside Tesla, offering Sam Altman, Greg Brockman and Ilya Sutskever a board seat or a Tesla‑subsidiary role. The plan surfaced as the nonprofit OpenAI wrestled over governance, while Musk questioned the lab’s capacity to deliver artificial general intelligence for future deployments in automotive systems and energy storage.

In late 2017, Musk’s doubts grew after learning that OpenAI would pivot to a for‑profit model. Emails show he wanted to commercialise TeslaAI, believing the company would thrive if he steered it. By early 2018, he had left the board, prompting the lab’s founders to re‑structure to secure capital and maintain its mission in AI.

The lawsuit, now centered on Musk’s claim that Altman stole a charity by converting OpenAI into a for‑profit, could reshape the AI industry. With OpenAI valued at $852bn, any shift in control or ownership would ripple through funding, partnerships, and the race for artificial general intelligence that will impact global tech investment decisions today and and.

Legal experts note that Musk’s earlier proposal to make OpenAI a Tesla subsidiary would have merged two of the world’s most influential AI developers, potentially consolidating patents and talent. The court hearing highlighted that Tesla’s ambition to rival Google, DeepMind and Facebook AI Research hinged on such a merger, a goal the founders ultimately rejected.