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Elon Musk speaking at Tesla Investor Day. 

Courtesy: Tesla

Elon Musk on Tuesday backed down from his attacks on a disabled Twitter employee who was laid off by the company and apologized for what he called a “misunderstanding.”

On Tuesday, the Twitter CEO questioned the work performance of Haraldur Thorleifsson — who goes by “Halli” — who he said has “done almost no work for the past four months.” Musk is also the CEO of electric car manufacturer Tesla.

“I would like to apologize to Halli for my misunderstanding of his situation,” Musk tweeted late Tuesday. “It was based on things I was told that were untrue or, in some cases, true, but not meaningful.”

“He is considering remaining at Twitter,” Musk added.

Thorleifsson, a disabled Icelandic entrepreneur, found himself drawn into a war of words with Musk after asking about the status of his employment. Thorleifsson and Twitter, which no longer has a communications department, did not respond to questions from CNBC on the spat by the time of publication.

On Monday, Thorleifsson, 45, tweeted Musk, saying that he had been locked out of his work computer for several days and failed to get a response from Twitter’s human resources department on whether he had been fired.

He suggested he may have been one of 200 employees reportedly let go by the company in February. Thorleifsson lives and works in the Icelandic capital Reykjavik with his wife and two children.

Musk, an avid user of Twitter, replied by asking Thorleifsson, “What work have you been doing?” to which Thorleifsson responded saying he saved the company $500,000 on a software-as-a-service contract and led prioritization of design projects.

When Musk probed for more details, Thorleifsson identified the SaaS contract he saved the company money on as the design platform Figma and said his prioritization work related to “all active design projects.”

Musk proceeded to respond with two laughing face emojis and later tweeted a link to a clip from “Office Space,” a comedy movie that parodies office working culture, where an employee is asked, “What would you say you do here?”

Following the back-and-forth with Musk, Thorleifsson said he was informed by Twitter’s head of human resources that he had been sacked.

Musk proceeded to criticize Thorleifsson over his work performance at the company, saying he “did no actual work, claimed as his excuse that he had a disability that prevented him from typing, yet was simultaneously tweeting up a storm.”

If an employee is having to ask their boss via Twitter if they still have a job or not, something has clearly gone pretty wrong.

Matt Monette

U.K. and Ireland Country Lead, Deel

Billy Markus, co-creator of dogecoin and an ally of Musk, expressed disapproval of Musk’s tweets. In a since-deleted response to Markus, Musk said, “He’s the worst, sorry.”

After a Twitter user said he had worked with Thorleifsson directly and found his work ethic “next level,” Musk says he gave Thorleifsson a video call “to figure out what’s real vs what I was told.” Musk then apologized and suggested Thorleifsson was considering staying at Twitter.

Matt Monette, U.K. and Ireland country lead at human resources platform Deel, said there was a “greater need for effective internal communications,” as tech layoffs increase while remote work is becoming more commonplace.

“If an employee is having to ask their boss via Twitter if they still have a job or not, something has clearly gone pretty wrong,” Monette told CNBC via email. “Employers must make sure they abide by the rules in different countries.”

The incident is one of the most bizarre developments to date in the saga surrounding Musk’s purchase of Twitter. Musk agreed to buy the social media site last year for $44 billion. He has since sought to cut costs dramatically in a bid to make it a profitable venture.

As part of that strategy, Musk laid off thousands of Twitter’s employees. It cut another 200 jobs last month, according to a report from The New York Times, taking its total staff count down to 2,000 from roughly 7,500 in October.

Person of the year

Thorleifsson was brought into Twitter as a senior director of product design after the sale of his company Ueno, a digital brand design agency, to Twitter in 2021. He suffers from muscular dystrophy, a disease that weakens muscles over time. Thorleifsson explained his disability has made it harder for him to do manual work for extended periods of time without his hands starting to cramp.

According to Icelandic Review, Thorleifsson was crowned Iceland’s “person of the year” in 2022 by several Icelandic media outlets, in part due to the sale of Ueno and his efforts to install wheelchair ramps across the country.

He says part of the reason why he sold the company — which he described as being on unfavorable financial terms — was that his disability made it harder for him to do manual work.

Thorleifsson says he chose to be paid the deal price as salary since, this way, he could pay more in taxes to contribute to public services.

If he took the money as a lump sum, it would have been treated as an investment and he would have paid a 22% capital gains tax. However, by taking it as salary, he opted to pay the higher 46% income tax rate instead.

Thorleifsson said he was in the dark about whether he will receive severance pay. “Companies let people go, that’s within their rights,” Thorleifsson said on Twitter. “They usually tell people about it but that’s seemingly the optional part at Twitter now.”

It is not yet clear what he will decide to do next — although he said earlier Tuesday that he was planning to open a restaurant named after his mother in downtown Reykjavik “very soon.”

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Cramer slams Amazon for considering a circular AI deal reminiscent of the dotcom bubble

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Cramer slams Amazon for considering a circular AI deal reminiscent of the dotcom bubble

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Amazon says AI chief Rohit Prasad is leaving, Peter DeSantis to lead ‘AGI’ group

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Amazon says AI chief Rohit Prasad is leaving, Peter DeSantis to lead 'AGI' group

Rohit Prasad, Senior VP & Head Scientist for Alexa, Amazon, on Centre Stage during day one of Web Summit 2022 at the Altice Arena in Lisbon, Portugal.

Ben McShane | Sportsfile | Getty Images

Rohit Prasad, a top Amazon executive overseeing its artificial general intelligence unit, is leaving the company at the end of this year, the company confirmed Wednesday.

As part of the move, Amazon CEO Andy Jassy said the company is reorganizing the AGI unit under a more expansive division that will also include its silicon development and quantum computing teams. The new division will be led by Peter DeSantis, a 27-year veteran of Amazon who currently serves as a senior vice president in its cloud unit.

This is breaking news. Please refresh for updates.

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Oracle stock dips 5% on report Blue Owl Capital won’t back $10 billion data center

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Oracle stock dips 5% on report Blue Owl Capital won't back  billion data center

Blue Owl decided not to pursue Oracle’s $10 billion Michigan data center, source familiar

Oracle stock dipped about 5% on Wednesday following a report that discussions with Blue Owl Capital on backing a $10 billion data center in Michigan had stalled, although the cloud company later disputed the report.

Blue Owl had been in talks with Oracle about funding a 1-gigawatt facility for OpenAI in Saline Township, Michigan, according to the Financial Times.

However, the plans fell through due to concerns about Oracle’s rising debt levels and extensive artificial intelligence spending, the FT reported, citing people familiar with the matter.

This comes as some investors raise red flags about the funding behind the rush to build ever more data centers.

The concern is that some hyperscalers are turning to private equity markets rather than funding the buildings themselves, and entering into lease agreements that could prove risky.

Blue Owl did look into the project, but pulled out due to unfavorable debt terms and the structure of repayments, according to a person familiar with the company’s plans who asked not to be named in order to discuss a confidential matter.

Blue Owl is still involved in two other Oracle sites, the person said.

The person added that Blue Owl was also concerned that local politics in Michigan would cause construction delays.

Oracle later responded to the FT report, saying the project was moving forward and that Blue Owl was not part of equity talks.

“Our development partner, Related Digital, selected the best equity partner from a competitive group of options, which in this instance was not Blue Owl. Final negotiations for their equity deal are moving forward on schedule and according to plan,” Oracle spokesperson Michael Egbert said in a statement.

The cloud company did not name the firm involved in current equity talks for the project.

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CNBC has reached out to the FT for comment.

The FT said that Blackstone is in discussions to potentially replace Blue Owl Capital as a financial partner for the data center, although no deal has been signed yet.

Blue Owl Capital has been the primary investor in Oracle’s data center projects in the U.S., including a $15 billion center in Abilene, Texas, and an $18 billion site in New Mexico, the FT said.

“This appears to be a case where the deal simply wasn’t the right one, and seasoned investors understand that success does not require winning every transaction,” Evercore ISI analysts wrote in a note on Wednesday.

The bank added that digital infrastructure remains a “core growth vertical” for the Blue Owl, noting an upcoming digital infrastructure fund in 2026 that would add to its $7 billion fund announced in May.

Oracle has $248 billion in lease commitments for data centers and cloud capacity commitments over the next 15 to 19 years as of Nov. 30, the company said in its latest quarterly filing. That is up almost 148% from August.

In September, the cloud computing giant raised $18 billion in new debt, according to an SEC filing. That same month, OpenAI announced a $300 billion partnership with Oracle over the next five years.

By the end of November, the company owed over $124 billion, including operating lease liabilities, according to the filing.

Oracle shares are down about 50% from the high of $345.72 reached in September.

Read the full FT story here.

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