Leaked Emails: Tesla’s Failed OpenAI Deal

Tesla tried to buy OpenAI in 2018.

After failing to complete a deal…

OpenAI is Elon Musk’s newest enemy…

Elon sued OpenAI and its founders last week. He claims that they illegally turned a non-profit into a for-profit controlled by Microsoft.

OpenAI responded yesterday by sharing email messages from Elon Musk to the other OpenAI founders.

The OpenAI non-profit received $44 million in funding from Elon Musk. Plus, $90 million from other donors.

Elon wanted OpenAI to raise $1 billion from investors.

OpenAI says that Elon tried to gain control of the company. According to a blog post titled OpenAI and Elon Musk…

  • 2017: “In late 2017, we and Elon decided the next step for the mission was to create a for-profit entity. Elon wanted majority equity, initial board control, and to be CEO. In the middle of these discussions, he withheld funding. Reid Hoffman bridged the gap to cover salaries and operations.”

  • 2018: “In early February 2018, Elon forwarded us an email suggesting that OpenAI should “attach to Tesla as its cash cow”, commenting that it was “exactly right… Tesla is the only path that could even hope to hold a candle to Google.”

This raises an important question…

Why did Tesla want to buy OpenAI?

This forwarded from Elon to the OpenAI team explains…

Tesla already built the “first stage” of the rocket with the whole supply chain of Model 3 and its onboard computer and a persistent internet connection.

The “second stage” would be a full self driving solution based on large-scale neural network training, which OpenAI expertise could significantly help accelerate. With a functioning full self-driving solution in ~2-3 years we could sell a lot of cars/trucks.”

Elon realized that Artificial Intelligence was critical to make self-driving cars.

OpenAI was the leading AI startup. And Elon thought they could advance Tesla’s autonomous EV project.

Ultimately, Elon failed.

He couldn’t gain control of OpenAI as a non-profit. And the other OpenAI founders wouldn’t sell to Tesla.

Fast forward to 2024.

Tesla is rolling out autonomous vehicles right now.

Ian

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