OpenAI CFO Sarah Friar Highlights AI’s Central Role in Davos and the Stargate Project
OpenAI CFO Sarah Friar recently discussed the growing focus on artificial intelligence (AI) during the Davos summit, the macroeconomic implications of the Stargate project, and detailed new AI products tailored for key customers.
Elon Musk’s Bid to Control OpenAI
A consortium led by billionaire Elon Musk has reportedly offered $97.4 billion to gain control of OpenAI. This move appears to support Musk’s ongoing dispute with OpenAI CEO Sam Altman over the direction of ChatGPT and AI development. According to The Wall Street Journal, Musk’s lawyer, Marc Toberoff, submitted the offer to OpenAI’s board on Monday.
While the offer is widely seen as unfavorable, it could disrupt Altman’s vision for OpenAI’s future, including plans to transition the company into a profitable enterprise. Altman has reportedly proposed spending up to $500 billion on AI infrastructure, a move Musk’s bid could complicate.
The legal battle between Musk and Altman over OpenAI’s trajectory continues to intensify, with both leaders vying for control of the company’s strategic direction.
War of Words Over AI Infrastructure
Musk and Altman have clashed publicly over AI infrastructure projects, including OpenAI’s involvement in the $500 billion Stargate initiative. Announced last month, Stargate aims to unite major players like SoftBank, OpenAI, and Oracle to build advanced data centers in the U.S., boosting AI development and productivity through automation.
However, Musk has cast doubt on the project’s feasibility, claiming the involved companies lack the necessary funding. “They don’t actually have the money,” Musk stated on X (formerly Twitter), questioning OpenAI’s financial capacity to support Stargate.
Altman responded to Musk’s criticism with a jab, offering to buy Twitter for $9.74 billion if Musk was interested. Musk fired back, calling Altman a “swindler” and reiterating his lack of trust in Altman’s leadership.
A History of Tension
Musk co-founded OpenAI in 2015 as a nonprofit organization but stepped back in 2018 after failing to persuade other leaders to let him take control or merge OpenAI with Tesla. Since then, Altman has led the company, establishing a for-profit subsidiary to secure investments from major backers like Microsoft.
Musk has openly criticized Altman, comparing him to the manipulative character “Little Finger” from Game of Thrones. He has also expressed skepticism about Altman’s ability to lead a company at the forefront of AI development.
The Stargate Project
Stargate, a massive AI infrastructure initiative, is expected to require an initial investment of $100 billion, potentially scaling up to $500 billion. Partners include Microsoft, Nvidia, investor MGX, and chipmaker ARM. Despite its ambitious goals, Musk remains unconvinced of its viability, citing financial constraints.
The project has sparked a public feud between Musk and Altman, with both exchanging barbs on social media regarding its feasibility and financing.
Ongoing Legal Battles
Musk has filed lawsuits against OpenAI and Altman, further escalating tensions. The disputes center on the company’s strategic direction and Altman’s leadership decisions.
A Developing Story
This story is still unfolding, with updates expected as the situation evolves. Tech Word News reporters Eric Revell and Kristen Altus contributed to this report.
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