In 2018, while Tesla was facing financial difficulties, Musk suggested merging OpenAI with Tesla, viewing OpenAI's potential to raise capital as a lifeline for Tesla. However, despite Musk's aggressive attempts to position himself as OpenAI's savior, the company has since thrived in the tech field, while Tesla has faced a slowdown in sales and a thinning of margins. Musk is now turning back to OpenAI in hopes of bolstering his empire.
Key takeaways:
- Elon Musk had proposed a merger between Tesla and OpenAI, suggesting that OpenAI raise $1 billion and name him CEO, during a period when Tesla was struggling financially.
- Musk's proposal came to light due to OpenAI's ongoing legal dispute with Musk, who has accused the company of breaching its contract to remain a nonprofit.
- In 2018, Tesla was in a difficult financial situation, struggling with the production and delivery of the Model 3, and Musk saw OpenAI's potential to raise capital as a lifeline for Tesla.
- Despite Tesla's financial recovery in 2020, the company is currently facing challenges with a slowing economy in China and a price war in America's electric-vehicle market, leading Musk to turn back to OpenAI.