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Elon Musk left OpenAI due to conflict of interest with Tesla
OpenAI, the nonprofit research firm co-founded by Elon Musk, announced that the serial tech entrepreneur is stepping down from the organization’s board of directors. According to an official announcement by the nonprofit, Elon’s departure is partly due to Tesla’s AI projects, which could result in a potential conflict of interest for the CEO.
Musk’s departure from OpenAI’s board does not mean that he is relinquishing ties with the nonprofit, however. In a blog post about its new supporters, the research firm asserted that the Tesla CEO will be staying on as a benefactor and advisor for the organization.
“Elon Musk will depart the OpenAI Board but will continue to donate and advise the organization. As Tesla continues to become more focused on AI, this will eliminate a potential future conflict for Elon.”
As Tesla continues to evolve its Autopilot suite of features and aims to complete its first coast-to-coast fully autonomous drive this year, the Silicon Valley electric carmaker is said to be working on its own AI-based chips that will power the company’s future fleet of driverless cars. Musk revealed his efforts to produce a custom AI chip during a machine learning conference held last year, telling event attendees that Tesla is developing specialized AI hardware that will be the “best in the world.” According to The Register, Musk told event attendees, “I wanted to make it clear that Tesla is serious about AI, both on the software and hardware fronts. We are developing custom AI hardware chips”.
Stepping down from OpenAI’s board seems to be a logical step for Musk as his focus on developing advanced artificial intelligence systems can be misconstrued by a non-profit that aims to be the watchdog for friendly AI development. Prior to the announcement of Elon Musk’s departure from OpenAI’s board, the nonprofit published a paper discussing the possible dangers of AI-based attacks. According to OpenAI’s study, it is now time for policymakers and individuals to be aware of ways that AI-based systems can be used maliciously, especially considering the ever-evolving artificial intelligence landscape.
To conduct the study, OpenAI collaborated with a number of researchers from other organizations, including the Future of Humanity Institute, the Centre for the Study of Existential Risk, the Center for a New American Security, and the Electronic Frontier Foundation.
Discussing the findings of their research, the authors of the study wrote that while investigations on the benefits of AI are widespread, studies on the dangers of advanced, intelligent machines are relatively few. As the field of artificial intelligence begins to expand and evolve, OpenAI’s researchers believe that threats associated with the technology would also start to grow and develop.
As noted in the study, artificial intelligence can expand existing threats, since the scalable use of AI technology can be utilized to lower the cost of attacks. With AI, even real-world attacks requiring human labor can be accomplished by machines that could think within and beyond their programming.
OpenAI’s new paper also discussed the emergence of new threats, which could rise through the use of systems that engage in tasks that are impractical for humans. The researchers also advised that the time might soon come when the AI-focused attacks can be finely targeted and challenging to attribute. With these in mind, the OpenAI researchers, together with co-authors of the study, recommended a series of contingencies that policymakers, as well as those involved in the research field, can implement to prevent and address scenarios when intelligent systems can be used maliciously.
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According to the recently published OpenAI paper, the time is right for policymakers to collaborate with technical researchers to investigate, prevent, and mitigate potential malicious uses of artificial intelligence. OpenAI also advised engineers and researchers to acknowledge the dual-use nature of their work, allowing misuse-related considerations to be part of their research priorities. Furthermore, the nonprofit called for more mature methods when addressing AI’s dual-use, especially among stakeholders and domain experts involved in the field.
In conclusion, the OpenAI researchers and their peers admitted that while uncertainties remain in the AI industry, it is almost certain that artificial intelligence will play a huge role in the landscape of the future. With this in mind, a three-pronged approach — consisting of digital security, physical security, and political security — would be a great way to prepare for the upcoming use and possible misuse of artificial intelligence.
Co-founded by Tesla and SpaceX CEO Elon Musk back in 2015, OpenAI is a nonprofit research firm that aims to create and distribute safe artificial general intelligence (AGI) systems. As we noted in a previous report, OpenAI seems to be giving clues that it is ramping up its activity this year, as shown in a recent job posting for a Recruiting Coordinator who will be tasked to train and onboard the company’s new employees.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Tesla Robotaxi is among its biggest projects currently, but many have been quick to point out the fact that the company has definitely been slow to expand its fleet.
However, there is definitely a method to that madness. CEO Elon Musk answered several concerns during last night’s quarterly earnings call that some might have about that slow rollout of the Robotaxi suite, maintaining the company’s narrative on prioritizing safety and wanting to avoid injuries to anyone, including animals.
Musk said:
“With Robotaxi, our goals are very ambitious for Robotaxi, but we do need to be cautious about causing any accidents or causing any harm to anyone. Although there are, I think, 30,000 to 40,000 automotive deaths per year in the U.S. alone, most of those do not generate any press or maybe, you never really read about almost any of those. If we injure even one person, it’ll be worldwide headline news, and regulators will immediately clamp down on our activities.
We don’t want to injure anyone. We’re going as fast as humanly possible in scaling Robotaxi, but while trying to ensure that we do not harm anyone at all, and ideally do not even run over a pet. That’s really the constraint is we want to grow as fast as possible with Robotaxi without harm to anyone.”
Tesla has maintained an exemplary safety record with its Robotaxi suite, according to internal data. VP of AI, Ashok Elluswamy, said that the Robotaxi suite has driven more than 380,000 miles unsupervised without any incidents.
0 notable incidents across over 380,000 miles traveled by Robotaxi
— Tesla (@Tesla) July 22, 2026
Analyst Colin Langan of Bank of America also pushed Tesla executives for answers regarding the company’s decision to add cities across several states with dozens of vehicles “as opposed to hundreds.”
Elluswamy said there’s a bigger advantage to do it the way Tesla has been because it ensures that its software stack “is a very general one:”
“The reason we have been expanding across different cities instead of just doubling down on a single city, is that we want to make sure that our stack is a very general one. It is a general one. We just want to both prove to ourselves and to other folks that it is working across a lot of different cities without too much effort per city. That’s what we see internally.”
In the past, we have written about Tesla’s decision to be incredibly conservative with its Robotaxi rollout, especially with the incredibly small fleet size compared to competitors. However, there really is not a price anyone can put on safety for those utilizing the platform or pedestrians, so what Tesla is doing is justified.
A year into the Robotaxi program being active, Tesla has made major strides, but many investors and fans would like to see the fleet expand as quickly as the program has to other cities and states.
Google’s massive stake in SpaceX will shock you
Tesla’s switch-up on selling Full Self-Driving has paid off big time
