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Tesla and SpaceX CEO Elon Musk, who is also the new owner and CEO of Twitter, bashed Apple this week after claiming the company has threatened to remove the Twitter app from its App Store, accusing the company of hating “free speech.”

The Twitter app is still available for iOS devices, and there’s no sign that the popular social media app is at real risk of getting booted by Apple.

The Tesla CEO’s furious tweets recall how Musk has long taken shots at Apple, and highlighted just how much power the tech juggernaut still has over the world’s richest person.

Meanwhile, Apple as a company never engages in public trash talk toward Musk or Tesla, and has even avoided taking veiled shots at them, as opposed to the frequent oblique criticisms aimed at Facebook.

Behind all the attacks, Musk has great admiration for Apple’s original founder, Steve Jobs. Musk has even begun working with Steve Jobs’ biographer, Walter Isaacson, on his own official biography.

A one-way war of words

Musk’s latest spate of Apple insults began last week. This week, Musk claimed in a tweet that Apple had mostly stopped advertising on the Twitter platform.

He tried to provoke Apple CEO Tim Cook into a public discussion about the reduction in advertising on Twitter, asking him if Apple hates “free speech in America” and “what’s going on here.” Cook did not respond.

Apple is not alone in reducing its campaigns on the social media platform since Musk took over.

After Musk closed a leveraged buyout deal on Oct. 28 and appointed himself CEO, a spike of anti-Black racist and antisemitic hate speech flooded the platform, partly because of raids that were coordinated by users on online chat platform 4chan.

Musk also began making steep cuts to Twitter’s workforce, gutting sales teams, teams responsible for measuring Twitter performance metrics and content moderation teams, among others.

Twitter has been losing advertisers and ad revenue ever since, with civil rights groups and previous advertisers on the platform pressuring Musk to prove that his much smaller team can responsibly manage content moderation, ad campaigns, cybersecurity and more.

Whether accurate or not, Musk’s allegation that Apple has “threatened to withhold” Twitter from its App Store may resonate with other developers.

Apple is notorious for providing few details when notifying app makers that their apps are at risk of suffering delayed updates or removal from the App Store. Responses inside Apple’s App Store Connect platform are terse, usually citing a rule, but not elaborating on what specifically an app maker should do to fix the problem — for example, Apple might say the app has a “metadata problem” or uses a banned application programming interface.

Musk also chafes under Apple’s platform fees, which are between 15% and 30% of total digital sales, like the $8 Twitter Blue subscription that Musk has said could be a major product for the company. Musk said it was a “de facto global tax” on the internet before he took over Twitter, but in his new role as an app owner, he has attacked it with increasing vigor.

This week, he tweeted and deleted a meme that suggested he would rather “go to war” than pay 30% to Apple.

Apple earlier this week declined to comment on the alleged threat of suspension or Apple’s ad spend with Twitter.

A long history of competition

Tesla and Apple are neighbors in the San Francisco Bay Area, which means that they have competed for talent for more than a decade. Now that competition has extended into Texas.

Both companies need mechanical engineers, industrial designers, materials science and battery experts, and skilled software engineers.

Apple has also invested heavily in developing its own electric autonomous vehicle technology. If the so-called “Apple Car” ever came to market, Tesla and Apple would be direct competitors.

In that context, early examples of Musk tweaking Apple could be seen as friendly rivalry.

When Tesla was still an underdog and upstart, Musk used to call Apple the “Tesla graveyard,” according to multiple former Tesla employees who spoke with CNBC. Internally, he would encourage unhappy Tesla workers to go apply for a cushy job at Apple.

He eventually brought this up in a public interview, saying that Apple hired people who were fired from Tesla.

In 2018, dozens of former Tesla employees landed at Apple, including some who were laid off and others who simply jumped ship from Tesla. At that time, the EV maker’s North American PR team told CNBC, “Tesla is the hard path. We have 100 times less money than Apple, so of course they can afford to pay more.”

One of the most notable people to switch sides was Doug Field, who started at Apple, joined Tesla and then rejoined Apple. Now he works for a more direct Tesla competitor, Ford.

Last summer, Musk laid out some of his problems with the way Apple does business on a Tesla earnings call, although he was careful not to name the company at first.

He started by criticizing the amount of cobalt, a mineral linked to human rights abuses, which Apple uses to make batteries in its devices. In 2018, Musk pledged to eliminate Tesla’s use of cobalt in its production entirely. Tesla has shifted a significant portion of its vehicles to a type of battery called an LFP, or lithium iron phosphate battery. However, it has not managed to eliminate need of cobalt completely yet.

In its most recent Impact Report, Tesla wrote, “we expect our absolute cobalt demand to increase over the coming years because our vehicle and cell production growth rate is forecasted to outpace the overall rate of cobalt reduction on a per cell basis.”

On the charging front, Tesla is experimenting with ways to give other EV drivers access to its network. But the company hasn’t opened up charging on a mainstream basis yet.

Later in the earnings call, Musk criticized Apple’s “walled garden” business model when answering a question about when Tesla chargers might be able to charge other vehicle makes.

“I think we do want to emphasize that our goal is to support the advent of sustainable energy,” Musk said. “It is not to create a walled garden and use that to bludgeon our competitors, which is used by some companies.”

In case anybody missed the reference to Apple’s App Store, which Apple maintains as the exclusive way to distribute apps to its devices, Musk then faked a cough and said, “Apple.”

Musk also has used Apple’s name to generate buzz. In September, when Apple announced satellite connectivity in its new iPhone 14 models (with satellites being operated by GlobalStar) Musk suggested that Apple had looked into using Starlink, which uses different technology.

“We’ve had some promising conversations with Apple about Starlink connectivity,” Musk tweeted, complimenting the iPhone team. Apple has never acknowledged any negotiations or even discussion with SpaceX.

Cook and Musk

Have Apple CEO Tim Cook and Musk ever spoken in depth?

According to Cook, the answer is no.

The Apple chief said in a 2021 podcast that he has “great admiration and respect” for Tesla, but that he had never spoken with Elon Musk. The two were photographed feet apart with other business leaders at a 2016 meeting with former President Donald Trump at Trump Tower.

But Musk claims that Apple declined his proposal to acquire Tesla years ago, when the EV maker’s market cap stood at a fraction of its current value.

“During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value). He refused to take the meeting,” Musk tweeted in 2020.

Another version of the story comes from “Power Play: Tesla, Elon Musk, and the Bet of the Century,” a book by business journalist Tim Higgins.

Around 2016, according to the book, Musk and Cook spoke about Apple potentially acquiring Tesla. It was struggling with high costs and issues shipping its Model 3 car at the time. Apple, with its expertise in manufacturing and large amounts of cash, would have been a perfect acquirer.

Except, in Higgins’ telling, Musk had one condition: He wanted to become CEO of the combined Apple-Tesla.

“F— you,” Cook said, according to the book.

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Inside one of the first all-female hacker houses in San Francisco

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Inside one of the first all-female hacker houses in San Francisco

For Molly Cantillon, living in a hacker house wasn’t just a dream, but a necessity.

“I had lived in a few hacker houses before and wanted to replicate that energy,” said Cantillon, 20, co-founder of HackHer House and founder of the startup NOX. “A place where really energetic, hardcore people came together to solve problems. But every house I lived in was mostly male. It was obvious to me that I wanted to do the inverse and build an all-female hacker house that created the same dynamic but with women.”

Cantillon, who has lived in several hacker houses over the years, saw a need for a space dedicated exclusively to women. That’s why she co-founded HackHer House, the first all-female hacker house in the San Francisco Bay Area.

“A hacker house is a shared living space where builders and innovators come together to work on their own projects while collaborating with others,” said Jennifer Li, General Partner at Andreessen Horowitz and sponsor of the HackHer House. “It’s a community that thrives on creativity and resource sharing, making it a cost-effective solution for those in high-rent areas like Silicon Valley, where talented founders and engineers can easily connect and support each other.”

Founded by Cantillon, Zoya Garg, Anna Monaco and Anne Brandes, this house was designed to empower women in a tech world traditionally dominated by men. 

“We’re trying to break stereotypes here,” said Garg, 21, a rising senior at Stanford University. “This house isn’t just about living together; it’s about creating a community where women can thrive in tech.”

Located in North Beach, HackHer House was home this summer to seven women, all of whom share the goal of launching successful ventures in tech. 

Venture capital played a key role in making HackHer House possible. With financial backing, the house offered subsidized rent, allowing the women to focus on their projects instead of struggling with the Bay Area’s notoriously high living costs.

“New grad students face daunting living expenses, with campus costs reaching the high hundreds to over a thousand dollars a month,” said Li. “In the Bay Area, finding a comfortable room typically starts at $2,000, and while prices may have eased slightly, they remain significantly higher than the rest of the U.S. This reality forces many, including founders, to share rooms or crash on friends’ couches just to make ends meet.” 

Hacker houses aren’t new to the Bay Area or cities like New York and London. These live-in incubators serve as homes and workspaces, offering a collaborative environment where tech founders and innovators can share ideas and resources. In a city renowned for tech advancements, hacker houses are viewed as critical for driving the next wave of innovation. By providing affordable housing and a vibrant community, these spaces enable entrepreneurs to thrive in an otherwise cutthroat and expensive market.

Watch this video to see how Hacker House is shaping the future of women in tech.

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Elon Musk’s X will be allowed back online in Brazil after paying one more fine

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Elon Musk's X will be allowed back online in Brazil after paying one more fine

The Federal Supreme Court (STF) in Brazil suspends Elon Musk’s social network after it fails to comply with orders from Minister Alexandre de Moraes to block accounts of those being investigated by the Brazilian justice system. 

Cris Faga | Nurphoto | Getty Images

X has to pay one last fine before the social network owned by Elon Musk is allowed back online in Brazil, according to a decision out Friday from the country’s top justice, Alexandre de Moraes.

The platform was suspended nationwide at the end of August, a decision upheld by a panel of judges on Sept. 2. Earlier this month, X filed paperwork informing Brazil’s supreme court that it is now in compliance with orders, which it previously defied.

As Brazil’s G1 Globo reported, X must now pay a new fine of 10 million reals (about $2 million) for two additional days of non-compliance with the court’s orders. X’s legal representative in Brazil, Rachel de Oliveira, is also required to pay a fine of 300,000 reals.

The case dates back to April, when de Moraes, the minister of Brazil’s supreme court, known as Supremo Tribunal Federal (STF), initiated a probe into Musk and X over alleged obstruction of justice.

Musk had vowed to defy the court’s orders to take down certain accounts in Brazil. He called the court’s actions “censorship,” and railed online against de Moraes, describing the judge as a “criminal” and encouraging the U.S. to end foreign aid to Brazil.

In mid-August, Musk closed down X offices in Brazil. That left his company without a legal representative in the country, a federal requirement for all tech platforms to do business there.

By Aug. 28, de Moraes’ court threatened a ban and fines if X didn’t appoint a legal representative within 24 hours, and if it didn’t comply with takedown requests for accounts the court said had engaged in plots to dox or harm federal agents, among other things.

Earlier this month, the STF froze the business assets of Musk companies, including both X and satellite internet business Starlink, operating in Brazil. The STF said in court filings that it viewed Starlink parent SpaceX and X as companies that worked together as related parties.

Musk wrote in a post on X at that time that, “Unless the Brazilian government returns the illegally seized property of and SpaceX, we will seek reciprocal seizure of government assets too.”

On August 29, 2024, in Brazil, the Minister of the Supreme Court, STF Minister Alexandre de Moraes, orders the blocking of the accounts of another company, Starlink, of Elon Musk, to guarantee the payment of fines imposed by the STF due to the lack of representatives of X in Brazil. 

Ton Molina | Nurphoto | Getty Images

As head of the STF, de Moraes has long supported federal regulations to rein in hate speech and misinformation online. His views have garnered pushback from tech companies and far-right officials in the country, along with former President Jair Bolsonaro and his supporters.

Bolsonaro is under investigation, suspected of orchestrating a coup in Brazil after losing the 2022 presidential election to current President Luiz Inacio Lula da Silva.

While Musk has called for retribution against de Moraes and Lula, he has worked with and praised Bolsonaro for years. The former president of Brazil authorized SpaceX to deliver satellite internet services commercially in Brazil in 2022.

Musk bills himself as a free speech defender, but his track record suggests otherwise. Under his management, X removed content critical of ruling parties in Turkey and India at the government’s insistence. X agreed to more than 80% of government take-down requests in 2023 over a comparable period the prior year, according to analysis by the tech news site Rest of World.

X faces increased competition in Brazil from social apps like Meta-owned Threads, and Bluesky, which have attracted users during its suspension.

Starlink also faces competition in Brazil from eSpace, a French-American firm that gained permission this year from the National Telecommunications Agency (Anatel) to deliver satellite internet services in the country.

Lukas Darien, an attorney and law professor at Brazil’s Facex University Center, told CNBC that the STF’s enforcement actions against X are likely to change the way large technology companies will view the court.

“There is no change to the law here,” Darien wrote in a message. “But specifically, big tech companies are now aware that the laws will be applied regardless of the size of a business and the magnitude of its reach in the country.”

Musk and representatives for X didn’t immediately respond to a request for comment on Friday.

Late Thursday, X Global Government Affairs posted the following statement:

“X is committed to protecting free speech within the boundaries of the law and we recognize and respect the sovereignty of the countries in which we operate. We believe that the people of Brazil having access to X is essential for a thriving democracy, and we will continue to defend freedom of expression and due process of law through legal processes.”

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OpenAI sees roughly $5 billion loss this year on $3.7 billion in revenue

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OpenAI sees roughly  billion loss this year on .7 billion in revenue

Sam Altman, CEO of OpenAI, at the Hope Global Forums annual meeting in Atlanta on Dec. 11, 2023.

Dustin Chambers | Bloomberg | Getty Images

OpenAI, the creator of ChatGPT, expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC has confirmed.

The company generated $300 million in revenue last month, up 1,700% since the beginning of last year, and expects to bring in $11.6 billion in sales next year, according to a person close to OpenAI who asked not to be named because the numbers are confidential.

The New York Times was first to report on OpenAI’s financials earlier on Friday after viewing company documents. CNBC hasn’t seen the financials.

OpenAI, which is backed by Microsoft, is currently pursuing a funding round that would value the company at more than $150 billion, people familiar with the matter have told CNBC. Thrive Capital is leading the round and plans to invest $1 billion, with Tiger Global planning to join as well.

OpenAI CFO Sarah Friar told investors in an email Thursday that the funding round is oversubscribed and will close by next week. Her note followed a number of key departures, most notably technology chief Mira Murati, who announced the previous day that she was leaving OpenAI after six and a half years.

Also this week, news surfaced that OpenAI’s board is considering plans to restructure the firm to a for-profit business. The company will retain its nonprofit segment as a separate entity, a person familiar with the matter told CNBC. The structure would be more straightforward for investors and make it easier for OpenAI employees to realize liquidity, the source said.

OpenAI’s services have exploded in popularity since the company launched ChatGPT in late 2022. The company sells subscriptions to various tools and licenses its GPT family of large language models, which are powering much of the generative AI boom. Running those models requires a massive investment in Nvidia’s graphics processing units.

The Times, citing an analysis by a financial professional who reviewed OpenAI’s documents, reported that the roughly $5 billion in loses this year are tied to costs for running its services as well as employee salaries and office rent. The costs don’t include equity-based compensation, “among several large expenses not fully explained in the documents,” the paper said.

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