The feud between Elon Musk and Sam Altman might be reaching its peak, especially with the upcoming court trial that could decide the fate of Altman at OpenAI. Before that happens, Elon Musk is intensifying his attacks on Altman via his series of posts on X (formerly Twitter). Amongst the many of his accusations, Musk references an investigative report from The New Yorker, and a previous interview clip involving an ex-OpenAI board member, using them to mock the OpenAI CEO as ‘Scam Altman.’
Altman, however, has denied any of the allegations made against him, especially concerning claims from the ex-board member of OpenAI.
But why is Elon Musk calling him ‘Scam Altman’?
Musk has had differences with Altman over the idea of OpenAI being taken as a ‘for-profit’ entity. However, Altman has been accused of lying to his board members previously, especially on matters related to the OpenAI startup fund and his financial gains from OpenAI.
In the following video clip reposted by Musk, one of the OpenAI board members, Helen Toner, spoke on The Ted AI Show podcast back in May 2024, throwing light on why the board had voted to fire Altman from OpenAI in November 2023. Toner, who made the decision alongside Tasha McCauley, Adam D’Angelo, and Ilya Sutskever, explained how the board lost all trust in Altman. She went on to accuse Altman of withholding information, misrepresenting facts, and outright lying.
Some of the key allegations Toner made in that video include:
– The board came to know about the launch of ChatGPT on X (formerly Twitter) rather than being informed in advance by Altman.
– Altman owned the OpenAI Startup Fund but did not disclose this to the board. He also lied about claiming he had no financial interest in the company.
– He provided inaccurate information multiple times about the company’s formal safety processes, making it impossible for the board to properly oversee safety and risk.
– After Toner co-authored an academic paper that Altman disliked, he allegedly began lying to other board members in an effort to push her off the board.
Toner said that the cumulative pattern of Altman lying over the years created a situation where the board could no longer believe what he told them. This made effective independent oversight impossible, especially for a nonprofit board whose legal duty was to prioritise humanity’s long-term interests over commercial or personal gain. Toner and the other directors accused Altman of creating a broader “toxic atmosphere” at the company.
Altman was eventually reinstated within days after massive employee pressure and investor pushback from Microsoft. Toner and McCauley ultimately left the board, while the company shifted further toward a for-profit structure and aggressive commercialisation.
Musk, however, references the incidents of Altman hiding his vested interests in the OpenAI Startup Fund and accusations of his lying in the congressional testimony about having no financial interests from OpenAI as the reasons why he gave him the title of Scam Altman.
Musk also shared a link to Ronan Farrow’s deeply reported New Yorker article titled “Sam Altman May Control Our Future—Can He Be Trusted?” and wrote, “Calling him ‘Scam Altman’ is accurate. This is very much worth reading.”
The New Yorker report furthers Musk’s point
The investigative report, which Musk referenced in another of his many posts, presents Farrow and co-author Andrew Marantz’s year-and-a-half-long investigation on Altman. The report raises serious questions about his honesty, leadership style, and whether he can be trusted with one of the most powerful technologies in human history.
The report draws on extensive interviews, internal documents, and previously unreleased memos, including a 70-page document from former OpenAI chief scientist Ilya Sutskever, accusing Altman of a “consistent pattern of… Lying.” It explains how Altman allegedly misled the board and executives about safety protocols, made unkept promises on AI alignment, and prioritised rapid commercialisation over the company’s original nonprofit safety mission.
The article also examines OpenAI’s shift toward a for-profit structure, its pursuit of massive funding from Gulf states, the dissolution of key safety teams in the company, and Altman’s history of conflict avoidance through strategic deception, according to multiple former colleagues.
How OpenAI/ Altman responded to these allegations
Both Sam Altman and the current OpenAI board have chosen to stay silent over accusations of openly lying in the congressional testimony. It is widely reported that Altman had originally stated in the Senate hearing of having “no equity in OpenAI” and was only paid enough for health insurance.
As far as the accusations of his silent ownership of the OpenAI Startup Fund are concerned, OpenAI had quietly updated the terms of ownership in a way that Altman could no longer own or control it, calling the previous ownership terms a temporary arrangement.
The OpenAI board had also given a public statement to Reuters as a response to Toner’s interview back in 2024, stating, “We are disappointed that Miss Toner continues to revisit these issues…The review concluded that the prior board’s decision was not based on concerns regarding product safety or security, the pace of development, OpenAI’s finances, or its statements to investors, customers, or business partners.”
Musk vs Altman: Where is this dispute heading
Prior to the rise of the AI era, Elon Musk was also a part of the OpenAI management. Musk, who co-founded OpenAI in 2015 before leaving in 2018 over disagreements about direction and control, has long accused Altman of betraying the company’s original mission to develop AI for the benefit of humanity rather than profit.
His latest endorsement of the OpenAI CEO as “Scam Altman” represents one of the most direct and personal attacks on his former colleague. Musk has been locked in a legal battle with OpenAI since 2024, alleging that Altman and the company breached their founding agreement by turning it into a profit-driven entity, with his intentions now seeing him out of the company.
If Elon Musk wins the ongoing trial against OpenAI and Sam Altman, the court could force a major restructuring of the company, potentially unwinding parts of its for-profit conversion. It could potentially return significant control or assets to the original nonprofit arm, removing Sam Altman and Greg Brockman from leadership, and requiring the disgorgement of billions in equity and profits. Musk has stated he would redirect any monetary damages (estimated between $79 billion and $150 billion) directly to OpenAI’s charitable arm rather than keeping them personally.
Such an outcome would deal a severe blow to OpenAI’s valuation and slow its aggressive commercialisation plans.
On the other hand, if Musk loses, OpenAI would likely emerge even stronger, gaining legal validation for its hybrid for-profit model and continued partnership with Microsoft. This could accelerate the company’s path toward a rumoured IPO, solidify its dominant position in the AI race, and largely dismiss criticisms that it has betrayed its founding mission, allowing Sam Altman to push forward with minimal constraints on building increasingly advanced AI systems.