We are aware that Elon Musk faced significant challenges in 2018.
It was a tumultuous time for Tesla as it grappled with the production of the Model 3, a crucial vehicle for the company’s future. The development process was plagued by delays and budget overruns, prompting Musk to seek additional capital.
What was previously unknown is that amidst this turmoil, Musk was also engaged in negotiations to acquire OpenAI, the AI startup behind ChatGPT, now valued at \(86 billion. Surprisingly, Musk proposed that OpenAI raise \)1 billion, merge with Tesla, and appoint him as the CEO. This revelation sheds light on Musk’s strategic maneuvers during that period.
The recent conflict between OpenAI and Musk has brought these details to the forefront. Musk’s dual objectives of rescuing Tesla and gaining control of OpenAI appear interconnected. His dissatisfaction with OpenAI stemmed from the company’s decision to involve other investors, denying Musk the opportunity to monopolize a venture he coveted. However, Musk’s approach lacked professionalism, resembling that of an insecure individual seeking validation rather than a respected business partner.
The disclosure of Musk’s interactions with OpenAI founders, Greg Brockman and Sam Altman, in a blog post unveiled his aggressive tactics. Musk pressured the founders to raise a substantial amount of capital, surpassing their initial fundraising target. Furthermore, Musk’s aspirations for Tesla to merge with OpenAI underscored his ambition to leverage the startup’s potential for financial gain and technological advancement.
Despite portraying himself as a savior to both Tesla and OpenAI, Musk’s actions reflected a blend of coercion and manipulation. His relentless pursuit of control and dominance overshadowed any genuine collaboration or partnership with OpenAI. The narrative of Musk’s involvement with OpenAI paints a picture of a determined yet contentious figure driven by a singular vision.
In retrospect, 2018 marked a challenging period for Tesla, characterized by production setbacks, financial losses, and operational hurdles. Musk’s leadership style, marked by impulsive decisions and grandiose promises, contributed to the company’s turbulent journey. Despite facing criticism and setbacks, Tesla’s strategic move to establish a presence in China’s electric vehicle market in 2019 paved the way for profitability in 2020.
As Tesla navigates through its current challenges, including market competition and declining sales, Musk’s focus has returned to OpenAI as a potential ally in bolstering his business empire. The juxtaposition of Tesla’s fluctuating performance and OpenAI’s rising prominence underscores the dynamic nature of Musk’s strategic endeavors.
In essence, Musk’s narrative in 2018 reflects a complex interplay of ambition, resilience, and controversy, shaping the trajectory of both Tesla and OpenAI during a pivotal period of transformation.
Linette Lopez is a senior correspondent at Business Insider.
