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Elon Musk calls himself a fool for giving OpenAI $38 million that became an $800 billion company

NOBODY TALKING: While everyone focuses on model benchmarks, Elon just admitted in court that xAI trains on OpenAI's models—and revealed he regrets the $38M that turned into $800B.

Illustration of two anonymous hands arranging task cards around an amber tool on a shared desk.
People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

Why it matters

Musk's courtroom admissions expose internal xAI strategy (reliance on OpenAI models for training) and reveal founder regret over early OpenAI investment—both material to understanding competitive dynamics and capital allocation decisions in the AI economy.

The key facts

5 to know
  1. Musk called himself a 'fool' for $38M OpenAI investment

  2. OpenAI valued at ~$800B (implied current valuation)

  3. xAI taps OpenAI's models for its own AI training (admitted in court)

  4. Litigation ongoing: Musk v. Altman (week one underway)

  5. Musk invoked 'Terminator' future warning in testimony

Go to the source

The Decoderthe-decoder.com

Publisher excerpt: Elon Musk called himself a "fool" in court, warned of a "Terminator" future, and admitted that xAI taps OpenAI's models for its own AI training. Week one of Musk's trial against Sam Altman delivered plenty of drama; and the best may still be ahead.
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