Musk Tried to Absorb OpenAI Into Tesla — New Testimony Reveals Failed Power Play

New testimony reveals Elon Musk launched a multi-pronged effort around 2018 to take control of OpenAI, including an attempt to merge the AI startup into Tesla. According to court testimony from Shivon Zilis, a director at Musk's companies and former OpenAI board member, the bid for control also involved an offer for OpenAI CEO Sam Altman to join Tesla's board. This history, detailed in reports from CNBC and Wired, reframes the billionaire's long-running feud with the AI lab, which culminated in a lawsuit he abruptly dropped in June 2024.

The Failed Takeover Bid

The central claim, emerging from recent court proceedings and reported by CNBC, is that Musk wanted OpenAI to become the de facto AI division of Tesla. Zilis, who has children with Musk, testified that the Tesla CEO's vision was for the two entities to combine. The combined picture suggests this was not a casual suggestion but a serious strategic objective. Offering Altman a seat on Tesla's board was a classic corporate power move—an attempt to co-opt a potential rival by aligning his incentives with Tesla's success. The offer was ultimately declined, and OpenAI's leadership chose to maintain its independence, setting the stage for years of conflict.

Plan B: Recruit and Replicate

When the direct approach failed, Musk's camp had a contingency plan. According to Wired, which cited messages between Zilis and Tesla executives from 2017, discussions were already underway to create a competing AI lab within Tesla. The plan was to build a powerful alternative if OpenAI could not be controlled. The messages show they were targeting top-tier talent to lead this effort, with Sam Altman himself being a primary candidate to be poached. Demis Hassabis, co-founder of DeepMind, was also mentioned as a potential leader, underscoring the scale of Musk's ambition. This wasn't just about starting a small research team; it was about replicating OpenAI's talent and mission under Musk's direct authority.

From Control Bid to Legal War

This history of a failed takeover adds a critical layer of context to Musk's subsequent actions. For years, Musk has publicly framed his opposition to OpenAI as a principled stand against the company abandoning its original non-profit, open-source mission for commercial gain. He used this argument as the foundation for the lawsuit he filed against Altman and the company in early 2024. However, the testimony from Zilis suggests his primary motivation has always been control. The issue was not that OpenAI became a for-profit enterprise, but that it became one outside of his orbit. For business leaders, this is a clear lesson: public narratives about mission and safety can often mask straightforward battles for market power and control. Musk's decision to drop his lawsuit just before this testimony and related evidence were set to become public appears highly strategic. It allowed him to avoid having his earlier, less altruistic motives scrutinized in a court of law. The public battle over AI safety was, it seems, preceded by a private battle for ownership.