Elon Musk Wanted Total Control of OpenAI – Did He See AGI Coming?

Elon Musk is known for making bold moves, but this one shocked everyone. Musk, one of the founders of OpenAI, wanted to take complete control of the organization. His reason? He believed that artificial general intelligence (AGI) was coming faster than anyone realized, and he wanted to be in charge to make sure it was developed safely.

This revelation comes from leaked communications between Musk and OpenAI leadership, as detailed in OpenAI’s public documentation (source). The emails reveal Musk’s early doubts about OpenAI’s nonprofit model and his push for total control.

When OpenAI refused to give Musk the power he demanded, it created a feud that would reshape the future of AI forever. Musk walked away, but he didn’t give up. This is the story of how Musk clashed with OpenAI and what it means for the race to create AGI.

2015: OpenAI Is Born

In November 2015, Elon Musk joined forces with Sam Altman, Greg Brockman, and Ilya Sutskever to start OpenAI. Their mission was simple but ambitious: build artificial intelligence that would benefit everyone and not just a handful of powerful companies.

Musk, already concerned about the dangers of unchecked AI, wanted OpenAI to act as a safeguard. But even from the beginning, he was uneasy about how the organization was set up. In an email from November 2015, Musk voiced his doubts:

“The structure doesn’t seem optimal… Probably better to have a standard C corp with a parallel nonprofit.”

In simpler terms, Musk believed OpenAI’s nonprofit model couldn’t compete with massive corporations like Google or DeepMind. Building AGI would require enormous amounts of funding and resources—far more than a traditional nonprofit could raise.

By December 2015, OpenAI officially announced its mission to the public. Headlines praised Musk’s efforts to “save the world” from dangerous AI. But behind closed doors, Musk was already asking the tough question: How could this nonprofit survive against its corporate rivals?

2017: Musk Makes His Move

By 2017, OpenAI was gaining momentum, but a major problem emerged: training large AI models required huge amounts of computing power. The cost to stay competitive was already climbing into the billions, and it was clear the price tag would only grow.

Musk, always quick to see the future, believed OpenAI had to adapt. In late 2017, he made a bold proposal to OpenAI’s leadership—one that left everyone stunned.

Musk’s Demands

• He would become CEO of OpenAI.
• He would gain majority ownership and equity.
• He would have total control over AGI development.

For Musk, this wasn’t about power or money—it was about safety. He believed AGI was coming much sooner than others expected, and he was convinced he was the only one who could keep it safe.

But OpenAI’s leaders refused. Their mission was to make AGI accessible to everyone. Allowing Musk to take total control would, in their view, go against that mission. One leader put it bluntly:

“You end up with unilateral absolute control over the AGI… It’s a bad idea to create a structure where you could become a dictator.”

They worried that Musk’s vision—however well-intentioned—would lead to a dangerous concentration of power. Ironically, it was exactly what OpenAI was trying to prevent.

2018: Musk’s Ultimatum

By early 2018, Musk’s frustration reached a breaking point. OpenAI still hadn’t given in to his demands, and they were struggling to secure the massive funding needed to compete with AI giants like Google.

In January 2018, Musk delivered a stark ultimatum:

“OpenAI is on a path of certain failure… This needs billions per year immediately or forget it.”

His solution? Merge OpenAI with Tesla. Musk argued that Tesla, with its resources and funding, could supercharge OpenAI’s progress. But OpenAI’s leadership saw this as a deal-breaker. They believed that Tesla’s corporate priorities would compromise OpenAI’s mission to serve all of humanity.

Seeing no way forward, Musk resigned from OpenAI’s board in February 2018. Publicly, he claimed the decision was to avoid a conflict of interest with Tesla’s growing AI initiatives. Privately, Musk believed OpenAI was doomed without him.

“Discussions are over.”

2019-2023: OpenAI Proves Musk Wrong

With Musk out of the picture, OpenAI faced an uphill battle. To survive, they needed to raise enormous sums of money to keep up with the AI arms race. In March 2019, OpenAI unveiled a new approach: a capped-profit model. This structure allowed OpenAI to attract billions in investment while staying committed to its nonprofit values.

Microsoft quickly stepped in, providing OpenAI with the funding and compute power they needed. By 2023, OpenAI released GPT-4, a groundbreaking AI model that stunned the world. OpenAI had done what Musk thought was impossible—they were leading the AI race without him.

Meanwhile, Musk found himself on the sidelines, watching as the organization he helped create surged ahead.

2023: Musk Strikes Back with xAI

Elon Musk isn’t one to walk away quietly. In March 2023, he launched xAI, a direct competitor to OpenAI. Musk branded xAI as a “safer” alternative, promising to develop AI in a way that truly prioritized humanity’s safety.

At the same time, Musk co-signed a letter calling for a pause on advanced AI development beyond GPT-4. This move was seen by many as an attempt to slow OpenAI’s progress. The irony? Musk, who once pushed OpenAI to move faster, now wanted them to hit the brakes.

Announcing formation of @xAI to understand reality

— Elon Musk (@elonmusk) July 12, 2023

The Race for AGI: Who Will Win?

Elon Musk saw AGI on the horizon before most people even realized its potential. He believed its creation could be the single most important event in human history—and he wanted to ensure it was handled safely, under his leadership. But OpenAI refused to hand over the reins. Their decision sparked a divide that redefined the future of AI.

Today, the race for AGI is more intense than ever. Musk’s xAI and OpenAI stand on opposing sides of a technological showdown. OpenAI, backed by billions from Microsoft, leads the field with breakthroughs like GPT-4. Meanwhile, Musk’s xAI is building its own vision, driven by his belief that he can still steer AI development in the right direction.

Who will shape the future of AGI? Is Musk’s return to the race a comeback story—or has the ship already sailed without him?

One thing is certain: the stakes have never been higher. The race for AGI will determine who controls the most powerful technology ever created—and how it will change humanity forever.

Elon Musk saw AGI coming—but OpenAI wouldn’t give him control. Now, he’s back in the fight, determined to leave his mark on the AI revolution. The clock is ticking, and the finish line is closer than we think.