Sam Altman vs. Elon Musk Has Become a Corporate Street Fight, and Tesla May Be Next

Sam Altman is no longer just feuding with Elon Musk online. He is now backing companies and partnerships that directly threaten Tesla, X, and Neuralink.

Sam Altman and Elon Musk were once allies. They co-founded OpenAI in 2015 and warned the world about the dangers of unchecked artificial intelligence. But their friendship has turned into one of Silicon Valley’s fiercest rivalries, and now Altman is targeting Musk’s biggest companies, from Tesla (TSLA) to Neuralink to X.

Okay, maybe not every Musk company will fall, but Altman is clearly moving his chess pieces onto the same board. The question now is whether this feud will change up entire industries.

Altman Targets Neuralink with His Own Brain Startup

One of Musk’s most ambitious bets is Neuralink, his brain-computer interface company. But Altman has jumped into the same field with Merge Labs, a new venture he co-founded that is raising funds at an $850 million valuation.

Merge Labs wants to compete directly with Neuralink by using its own approach to brain-computer technology. This creates an awkward conflict of interest because Altman is actually a small investor in Neuralink while also funding its new rival. Musk’s company may be worth $9 billion, but Altman clearly believes there is room to disrupt.

OpenAI Moves Toward Social Media to Challenge X

Altman is not stopping at brain tech. He is also setting his sights on Musk’s social media platform X, formerly known as Twitter. Reports suggest OpenAI is building its own X-like social network.

That could become a serious threat, since ChatGPT already draws more users weekly than X does monthly. If OpenAI adds social networking to its toolkit, it could chip away at Musk’s control over the digital conversation.

Tesla Faces Indirect Competition from Altman’s AI Push

Tesla has been struggling to maintain sales momentum. Deliveries in China and beyond have been hit, and Musk is now betting big on self-driving taxis as the company’s future. But approval for full self-driving is still out of reach.

Meanwhile, Altman has partnered OpenAI with Applied Intuition, a $15 billion self-driving software company. He has even hinted that their approach to autonomous driving may already outperform Tesla’s. If true, that would hit Tesla where it hurts most; in its ability to stay ahead in AI-powered cars.

The Rivalry Expands to Space and Beyond

Altman’s bets do not end there. He has backed Longshot Space, a company with the bold goal of shooting satellites into orbit with giant launch guns, and Glydways, a robocar startup that could rival Musk’s robotaxi vision. Each of these investments adds another layer to the contest.

The two men’s feud has spilled into lawsuits and public insults, but what matters most now is how their companies clash. From space travel to social media to EVs, the rivalry could shape where billions of dollars and millions of users go in the years ahead.

What Is the Prediction for Tesla Stock?

Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 13 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $306.42 per share implies 11.5% downside risk.

See more TSLA analyst ratings