AI news story

Elon Musk calls himself a fool for giving OpenAI $38 million that became an $800 billion company

Elon Musk called himself a "fool" in court, warned of a "Terminator" future, and admitted that xAI taps OpenAI's models for its own AI training. Week one of Musk's trial against Sam Altman delivered plenty of drama; and the best may still be ahead. T

  • LLMs
  • Source: The Decoder
  • Published: 2026-05-02
  • Signal score: 3
  • 62 sources

Editor's take

Elon Musk has publicly expressed regret over his early investment in OpenAI, framing it as a significant financial misstep given the company's current valuation and his own subsequent AI ventures.

This sentiment underscores the intense competition and evolving landscape of generative AI development. Musk's admission that xAI leverages OpenAI's models, even as he criticizes the organization, highlights the interconnectedness and proprietary nature of foundational model development, impacting both research progress and market dynamics for AI startups.

Future developments to monitor include potential shifts in xAI's reliance on external models, the legal ramifications of Musk's lawsuit on OpenAI's operations and future funding, and whether this public airing of grievances influences investor sentiment towards AI companies with complex founder histories.

Signal score: 3

This event was corroborated by 62 independent sources. The signal score weighs cross-source corroboration, recency, source weight and topic salience. How we rank stories.

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