Artificial intelligence has rapidly gone from sci-fi fantasy to mainstream reality thanks to modern machine learning breakthroughs. But who owns and controls this transformative technology as it permeates our software and even conversations? That question has tricky answers when it comes to prominent AI trailblazers like Elon Musk and OpenAI.
OpenAI emerged in 2015 as a non-profit artificial intelligence research company led by tech luminaries like Musk, Sam Altman, Greg Brockman, and others. Their vision was to freely advance AI capabilities while keeping humanity‘s best interests at heart.
Elon Bets Big on AI Safety
Musk took a substantial gamble on that vision, investing $1 billion of his personal fortune into OpenAI’s initial funding pool. For perspective, that’s over 3x what he invested into both SpaceX and Tesla during their early stages. Musk was also named co-chairman of OpenAI alongside Altman to directly guide its research.
However, his overlapping role as CEO of Tesla soon led to conflict. Since Tesla was simultaneously developing advanced AI for self-driving vehicles, Musk chose OpenAI’s interests over his own financial stake. In 2018 he severed all formal ties – forfeiting his board seat and non-profit shareholding.
"I have remained dedicated to supporting OpenAI‘s mission of ensuring AI is developed safely and benefits all of humanity,” Musk said regarding his departure.
Microsoft Bets Even Bigger
With Musk stepping aside, OpenAI needed a new leading backer. They found it in Microsoft Corp, who invested $1 billion into OpenAI in 2019. Microsoft’s Satya Nadella praised their mission, and clearly had plans to leverage OpenAI’s AI capabilities.
Those plans became more evident after OpenAI unveiled their chatbot ChatGPT in November 2022. Microsoft swooped in weeks later with an eye-popping additional investment of $10 billion specifically into products utilizing ChatGPT. All told, their total OpenAI funding reached $11 billion – even surpassing Musk’s original stake.
| Microsoft‘s Investments in OpenAI | Amount | Year |
|---|---|---|
| First Investment | $1 billion | 2019 |
| ChatGPT Investment | $10 billion | 2022 |
| Total | $11 billion |
This immense capital infusion increased external valuations of OpenAI to around $29 billion as of 2023. Now bolstered by Microsoft‘s war chest, OpenAI gained industry-leading resources to dominate the AI space.
OpenAI Shifts to Commercialization
In a pivotal move, OpenAI also incorporated a for-profit capped returns company under their non-profit in 2019. This structure allowed them to raise investable capital from entities like Microsoft while staying true to their charter.
They began commercializing access to various AI models via a token-based API starting with GPT-3 in 2020. By 2022, API sales became OpenAI‘s prime revenue stream according to their CEO – earning them nearly $100 million.
Other major milestones included:
- GPT-3 API Launch (2020) – 124 billion parameters
- DALL-E Image Generator (2021) – creates images from text
- Codex API (2021) – writes code from description
- ChatGPT (2022) – conversational AI interface
Adoption and user counts grew rapidly after ChatGPT‘s launch. Over 1 million users interacted with it just days after release.
Did Exiting OpenAI Cost Musk Billions?
If Musk retained his original OpenAI ownership stake, his net worth could’ve seen dramatic positive impact from their hundred-fold valuation spike. Even gaining a fraction of the return that Microsoft enjoyed could have meant billions in his pocket.
However, Musk has not shown monetary regrets over leaving OpenAI – if anything doubling down on AI safety concerns. He was among lead signatures in an open letter from researchers urging debate on advanced AI before releasing models more powerful than GPT-4. While near-term profit motives aren’t apparently driving him, Musk still sees AI playing a role in his vision of the future.
Hence his newest venture – X.AI Corp – incorporated in mid 2022. Little is confirmed besides its AI focus, but reports indicate Musk has already poached engineering talent from DeepMind while building out a team. If his track record proves predictive, Musk is gearing up for vertical integration between X.AI capabilities and his other fledgling ventures.
The Final Chapter Unwritten
The winding road of AI advancement makes for strange bedfellows and surprise twist at every bend. While Musk‘s split from OpenAI may have cost him a fortune, his passion for technological progress remains as strong as ever. And with AI poised to radically shape transportation, healthcare, creative arts, and global communications, we can expect iconic entrepreneurs like Musk to leave their mark – for better or worse.
Where the final destination lies remains unseen. But robust public dialogue and oversight will hopefully steer these powerful AI models to expand prosperity rather than deepen divides.
