AI BriefingMusk Attempted to Seize Control of OpenAI, Claims Investor
Key point
Vinod Khosla claimed that Elon Musk's desire for management control caused the conflict with Sam Altman.
Details
Vinod Khosla, an early investor in OpenAI, explained the background of the conflict between Elon Musk and Sam Altman in an interview with Fortune.
Khosla claimed that Musk tried to run OpenAI like his own 'private fiefdom' rather than as a public benefit company, and sought to take the CEO seat for himself. This attempt to seize control put pressure on Sam Altman, Greg Brockman, and others, which led Altman to seek outside funding.
Khosla also revealed that he invested $50 million in OpenAI at the time (based on a $1 billion valuation), which was the largest investment of his 40-year investing career. He added that the investment seemed so reckless at the time that he even sent an apology letter to his LPs (limited partners).
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