Microsoft Faces Potential Takeover by Partner OpenAI, According to Elon Musk's Prediction Following Integration Announcement
In a recent turn of events, the AI world witnessed a playful exchange between tech giants Elon Musk and Sam Altman.
Microsoft CEO Satya Nadella took a light-hearted approach to Elon Musk's dire warning about Microsoft getting eaten alive, responding on X with a cheerful "People have been trying for 50 years, and that's the fun of it!" This comment was in response to Musk's prediction that "OpenAI is going to eat Microsoft alive".
OpenAI CEO Sam Altman, however, seemed unfazed by Musk's criticism, brushing off the tweet during an appearance on CNBC's "Squawk Box" on Friday. It is unclear what prompted Musk's criticism, as no prior context was provided.
Musk's criticism of OpenAI is not a new phenomenon. He has previously criticized the organisation on various platforms. It is also worth noting that Elon Musk and Sam Altman were co-founders of OpenAI in 2015, with the aim of promoting safe and accessible AI. However, their collaboration ended in 2018 when Musk left the company after a disagreement over the direction of its mission.
Their relationship took a turn for the worse in 2024 when Musk sued OpenAI's leadership and Microsoft, accusing them of abandoning OpenAI’s original non-profit mission to maximise profit. The lawsuit is scheduled for trial in March 2026.
Moreover, Musk's company, xAI, sued Apple in 2025, alleging antitrust violations, claiming Apple favoured OpenAI’s ChatGPT in App Store rankings over Musk’s AI chatbot, Grok. Apple denied any bias, and OpenAI dismissed Musk’s claims as unfounded.
In response, Altman accused Musk of manipulating the algorithm on his social media platform X to unfairly promote his own companies while disadvantaging competitors. This generated a heated public feud with personal insults and challenges exchanged on social media.
Interestingly, recent developments show an unusual twist: Musk’s Grok AI publicly sided with Altman in the Apple App Store dispute, while ChatGPT showed support for Musk. This adds complexity to this high-profile corporate rivalry.
From a product perspective, Musk’s Grok AI has underperformed against OpenAI’s models in AI capabilities tests such as chess tournaments. Musk himself downplayed Grok’s chess abilities as a "side effect" of its development focus.
This rivalry, which blends personal history, contrasting visions for AI’s future, and intense competition between xAI and OpenAI, is highly anticipated due to its potential impact on AI innovation and governance.
Sources:
- TechCrunch
- The Verge
- Ars Technica
- CNBC
- The Information
- In the realm of business and technology, Elon Musk's xAI is currently engaged in a lawsuit against Apple, alleging antitrust violations over App Store rankings for their AI chatbot, Grok.
- The news of funding for scaling Grok AI's operations has been silent, while OpenAI, with Microsoft as a key investor, continues to make strides in technology and AI capabilities.
- Despite their shared history as co-founders of OpenAI, the rivalry between Elon Musk and Sam Altman has escalated, with personal insults and challenges on social media, creating a spectacle in the entertainment world.
- The success of OpenAI's ChatGPT in AI capabilities tests, such as chess tournaments, contrasts with Musk's downplaying of Grok's chess abilities, reflecting their differing visions for AI's future.
- The financial consequences of the ongoing legal battles between Musk, xAI, OpenAI, and Microsoft remain a topic of interest in finance and business news, as the trials approach in the coming months.
