Sam Altman, CEO of OpenAI, at the Hope Global Forums annual meeting in Atlanta on Dec. 11, 2023.
Dustin Chambers | Bloomberg | Getty Images
OpenAI executives disputed claims Elon Musk laid out in a lawsuit on Thursday, and said the Tesla CEO is upset that he’s no longer part of the artificial intelligence startup.
“We believe the claims in this suit may stem from Elon’s regrets about not being involved with the company today,” wrote OpenAI Chief Strategy Officer Jason Kwon in an internal memo on Friday that was viewed by CNBC. “It is deeply disappointing to see Elon take this action against a company he helped start, especially given his close collaboration with some of you who are still here working towards the mission.”
Musk co-founded OpenAI in 2015 and stepped down from its board in 2018, four years after saying that AI is “potentially more dangerous than nukes.”
Musk is now suing Microsoft–backed OpenAI and CEO Sam Altman, among others, alleging they abandoned the company’s founding mission to develop artificial intelligence “for the benefit of humanity broadly.”
Since releasing the ChatGPT chatbot to the public in late 2022, OpenAI has become one of the hottest startups on the planet, with a valuation reportedly over $80 billion. The company’s convoluted “capped-profit” structure resulted in Altman being briefly ousted by the board late last year, before an uproar among investors and employees led to his quick reinstatement.
Musk has long wanted recognition for his central role in the creation of OpenAI, and he spent large chunks of the lawsuit telling his version of events. His lawyers said in the suit that Musk was approached in 2015 by Altman and OpenAI co-founder Greg Brockman and agreed to form a nonprofit lab that would develop artificial general intelligence, or AGI, outside of the corporate sphere.
Musk’s attorneys said their client contributed over $15 million to OpenAI in 2016, which was “more than any other donor” and helped the startup build a team of “top talent.” The next year, Musk gave nearly $20 million to OpenAI, which the attorneys reiterated was more than other backers. In total, Musk invested over $44 million into OpenAI from 2016 through September 2020, according to the suit.
Additionally, Musk leased OpenAI’s initial office space “and paid the monthly rental expenses,” the suit said. He was also “present for important company milestones.”
Kwon didn’t dispute Musk’s central role in the early days of OpenAI, but he added some other details. For example, Kwon wrote that Musk at one point indicated he needed “full initial control and majority equity” and later suggested that OpenAI merge with Tesla.
“We did not think either approach was right for the mission,” Kwon wrote.
In the memo, Altman called Musk a hero of his and said the he misses the old version of his co-founder. But he said the company’s mission continues.
While it’s the first time the dispute between the two sides has resulted in a fiery lawsuit, they’ve been at odds for a while.
Before he split with OpenAI, Tesla hired co-founder Andrej Karpathy as senior director of AI. Karpathy returned to OpenAI in 2023. And Musk has been notably vocal in his opposition to OpenAI and its Microsoft partnership in recent years, stating publicly in November that OpenAI had deviated from its original mission.
“OpenAI should be renamed ‘super closed source for maximum profit AI,’ because this is what it actually is,” Musk said onstage at The New York Times’ DealBook conference. Regarding OpenAI’s transformation from an “open source foundation” to a multibillion-dollar for-profit company, Musk said, “I don’t know, is this legal?”
Kwon insisted on Friday that OpenAI is independent and continues to work “to ensure AGI benefits all of humanity.”
Musk’s lawyers didn’t immediately respond to a request for comment.
— CNBC’s Lora Kolodny and Hayden Field contributed to this report
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Tuesday’s key moments. 1. Stocks were mixed on Tuesday, with the S & P 500 and Dow Jones Industrial Average up and the Nasdaq Composite down slightly, with Big Tech names under pressure. Nvidia shares fell more than 6% after The Information reported that Meta may use Google’s tensor processing units (TPUs) in its data centers starting in 2027. Broadcom , which helps Google design its TPUs, jumped 11% Monday on the news. Jim Cramer said the pullback in Nvidia is a buying opportunity. “If you don’t have any Nvidia, it’s time to buy,” he said. He added investors are also “getting an opportunity to buy Meta” on the possibility the company could save money on chips and see its stock bounce. 2. This “discouraging day” for tech investors shows the value of having a diversified portfolio, Jim said. That’s why the Club favors defensive names like Procter & Gamble . With a new CEO taking over in January, Jim expects changes ahead. “You can’t have a new CEO come in and not have some change from what’s going on,” he said, noting that underperforming units will likely be cut. Procter has been a disappointment lately, but our thesis is that money will move out of high-flying tech stocks and into more profitable, economically resistant companies. That’s why we added to our position on Tuesday. Elsewhere, home improvement retailer Home Depot is down nearly 12% year to date. We used that weakness to add to our position last week. When interest rates fall, the stock will rise. 3. Shares of Nike are up 3% after Dick’s Sporting Goods announced plans to close a slew of Foot Locker locations during its third-quarter earnings on Tuesday. Dick’s acquired Foot Locker in May. “Nike is a buy, off of Dick’s problems,” Jim said. Ed Stack, executive chairman of Dick’s Sporting Goods, told “Squawk on the Street” that the retailer’s relationship with Nike is improving. “They’re moving in the right direction,” he said, citing strong performance from Nike’s running line. “If you take a look at what they did with their running construct, what they did with Pegasus, what they did with Vomero, what they did with Structure, this running concept has done extremely well on the Dick’s side, and where it’s been put into Foot Locker stores, it’s done really well there too.” 4. Stocks covered in Tuesday’s rapid fire at the end of the video were: Best Buy , Agilent Tech , and Abercrombie . (Jim Cramer’s Charitable Trust is long NVDA, META, AVGO, PG, HD, NKE. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Elon Musk attends the U.S.-Saudi Investment Forum in Washington, D.C., U.S., November 19, 2025.
Evelyn Hockstein | Reuters
Elon Musk’s artificial intelligence startup xAI is expected to close a $15 billion round at a $230 billion pre-money valuation next month, sources familiar with the matter told CNBC’s David Faber.
The deadline for allocation is the end of day on Tuesday, with the round expected to close on Dec. 19, the sources said.
This confirms earlier CNBC reporting that the company was raising $15 billion. The Tesla CEO later called the report on the round “False” in a post on the social media platform X.
At the time, sources told CNBC that xAI would use a large portion of the money for funding graphics processing units responsible for powering large language models.
CNBC had previously reported in September that the startup was looking to raise $10 billion at a $200 billion valuation.
The funding round is yet another sign of the insatiable demand for AI tools. Companies, including OpenAI and Anthropic, have raised billions and reached sky-high valuations as investors pour more money into companies building foundational AI models.
Musk’s xAI is responsible for creating the Grok chatbot that has come under fire for disseminating hate speech, including antisemitic content. The company recently debuted Grokipedia, an AI-powered competitor to Wikipedia.
In March, Musk announced the merger of xAI with X in a deal valuing the social media platform at $33 billion.
TSMC on Tuesday filed a lawsuit against a former senior vice president it accused of leaking “confidential information” to Intel.
Wei-Jen Lo joined Intel after 21 years at TSMC, having left in July, the Taiwanese chip maker said in a statement, announcing the lawsuit.
The lawsuit is based on Lo’s employment contract and non-compete agreement with TSMC, and regulations such as the Trade Secrets Act, the statement said.
“There is a high probability that Lo uses, leaks, discloses, delivers, or transfers TSMC’s trade secrets and confidential information to Intel,” it said.
TSMC’s share price fell on Tuesday and was last seen over 3% lower.
Intel did not immediately respond to CNBC’s request for comment.
It follows earlier reports by local media and later by Reuters, which stated Lo may have taken TSMC’s technology data to Intel. Taiwan’s High Prosecutors opened an investigation into the allegations.
Intel CEO Lip-Bu Tan told Bloomberg News last week that his “company respects intellectual property rights” and denied any wrongdoing.
The U.S. firm’s stock price moved 1.5% lower in mid-morning trade.