Should Sam Altman (And Other Tech Execs) Fear Elon Musk's Retribution? | Techmeme Ride Home Podcast

We’ve spoken many times about how OpenAI is clearly in the lead in the AI race, and yet, faces a potentially precarious situation. Over the weekend the Financial Times had a piece outlining how OpenAI plans to build data centers in parts of the US Midwest and Southwest. Also, there were talks of them maybe introducing advertising soon to gin up some extra revenue. Why? Well sources say: OpenAI is spending $5B a year and is QUOTE “not close to breaking even.”

But as that last segment highlights, is Elon Musk himself, and his vendetta against the company, maybe the primary risk at the moment? The Journal says a number of tech executives, including Sam Altman, worry that Elon Musk's new proximity to President elect Trump could supersize rivalries in ways that favor Musk. Quote:

Since the election, people close to Musk have said he despises Altman. Musk has cranked up the heat on their feud, filing an expanded version of his lawsuit calling OpenAI a “market-paralyzing gorgon.” Musk also pinned his personal correspondence with Altman to his X account and gave Altman his own Trump-style nickname on X: “Swindly Sam.”

Altman, a registered Democrat who chose not to endorse a candidate in this election, felt blindsided, a person familiar with his thinking said.

The richest man in the world is poised to have significant influence not only over how his six companies, including X, Tesla and SpaceX, interact with the federal government—SpaceX has accumulated more than $15 billion in federal contracts over the last decade—but also over how the new administration treats his rivals.

Musk’s influence with Trump extends far beyond the Department of Government Efficiency, or “DOGE,” the newly created advisory body that he will co-lead with Vivek Ramaswamy with the goal of slashing federal head count and regulations. He has rarely left Trump’s side since the election, sleeping at Mar-a-Lago, Trump’s private club and informal MAGA headquarters in Palm Beach, Fla.

That puts personal rivals like Altman in an unenviable position. “It’s known that he’s PNG,” or persona non grata, said one person close to the Trump family, speaking of Altman. The new administration will hold huge sway over the regulation of the nascent AI sector, including over Musk’s own rival AI company, xAI.

Altman has been in contact with friends and business associates within Trump’s circle, including Jared Kushner, Trump’s son-in-law; and Josh Kushner, his brother and the owner of the venture-capital firm Thrive Capital that is a major investor in OpenAI. Not much has worked so far. Some Altman contacts have been hesitant to pass on his entreaties, knowing how unwelcome they would be to Musk.

In recent weeks, Altman asked a mutual friend to arrange a meeting with Howard Lutnick, co-chair of the president-elect’s transition team, people familiar with the meeting said. Lutnick ranks as one of Trump’s closest advisers, and is also close to Musk. At a meeting in Palm Beach, Altman touted the investments OpenAI intends to make in the U.S. by building large data centers and making lots of hires, some of the people said.

Lutnick has since become Trump’s pick to lead the Commerce Department, which oversees AI regulation. ENDQUOTE

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