OpenAI's $1 Trillion IPO Pursuit and Musk Dispute Highlight Tension Between Profit and Public Benefit in AI's Tomorrow

OpenAI CEO Sam Altman is working to reshape the landscape of artificial intelligence, all while managing a fierce competition with Elon Musk. As OpenAI eyes a possible $1 trillion IPO as early as 2026 or 2027, Altman has also renewed efforts to mend fences with Musk, whose

Inc. and xAI projects are now in direct rivalry with OpenAI’s leading position in AI, according to a . Should the IPO proceed, it would be among the most significant stock market launches ever, driven by OpenAI’s recent $500 billion valuation and its transition to a public benefit corporation, as outlined in an .

The company’s reorganization, completed after extensive discussions with California authorities, enables OpenAI to maintain nonprofit oversight while pursuing commercial growth. Altman stressed that staying in California was vital to uphold OpenAI’s commitment to serving the “broader interests of all stakeholders,” the Economic Times reported. Under the new structure, the OpenAI Foundation holds a 26% share in the revamped organization, ensuring its influence through an independent board, according to the Economic Times.

At the same time, Altman’s disputes with Musk have intensified. In a recent online exchange, Altman criticized Tesla’s handling of his 2018 Roadster order, which he tried to cancel after waiting seven years. Musk responded by claiming Altman left out important facts, such as a resolved refund, as reported by a

. Their conflict dates back to 2018, when Musk departed OpenAI over disagreements about its nonprofit direction. Since then, the rivalry has grown, including Musk’s unsuccessful $97.4 billion offer to buy OpenAI and lawsuits over alleged staff poaching, according to a .

Their competition goes beyond personal disputes. Musk’s xAI, launched in 2023, and Tesla’s AI initiatives now pose a direct challenge to OpenAI’s dominance. Altman has described his recent outreach to Musk as an effort to focus on cooperation rather than rivalry, even as Musk questions OpenAI’s valuation and management, as noted in a

. “I helped you turn what many thought was a doomed venture into the world’s largest nonprofit,” Altman said, encouraging Musk to “let go of the past and look ahead.”

Financial challenges are also mounting. OpenAI intends to invest $1.4 trillion in AI infrastructure, a scale Altman admits will require IPO funding, as previously mentioned by TradingView. The company’s anticipated $20 billion annual revenue is offset by increasing losses, highlighting the need for additional capital, the Economic Times reported. Meanwhile, Musk faces his own pay controversies at Tesla, where a $1 trillion compensation plan is being challenged by California’s CalPERS, according to a

.

As OpenAI moves closer to going public and Musk continues to champion his AI and electric vehicle ventures, the ongoing Altman-Musk rivalry remains central to the AI industry’s competitive landscape. Their differing philosophies—OpenAI’s structured, nonprofit-focused model versus Musk’s disruptive, profit-oriented approach—mirror the larger debates about the direction and oversight of artificial intelligence.